Multiple choice

Who bears SIT in Fund's case of Equity Mutual?

  1. AMC

  2. Investor

  3. Trust

  4. Sponsor
Reveal answer Fill a bubble to check yourself
B Correct answer
Explanation

SIT (Securities Transaction Tax) on equity mutual fund redemptions is borne by the investor. It's deducted at the time of redemption from the proceeds credited to the investor. The AMC, Trust, and Sponsor do not bear this tax - it's a cost passed through to the investor redeeming units.

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