How Can We Help You?
How Can We Help Today?
Search for answers or explore topics below
What are the fees associated with investing in mutual funds on CubePlus?
Mutual Funds investment through CubePlus by Tradejini is absolutely free (0 Commission) since we offer Direct Mutual Fund plans and not Regular Mutual Funds. However, mutual fund transactions involve certain charges stupulated by regulatory bodies or fund houses which we are required to collect on behalf of these entities. These costs are passed on to the respective entity on a as-is-where-is basis. These charges apply regardless of the platform used for investing. Below is an overview of these charges:
Stamp duty on allotment - A tax levied on the purchase of mutual fund units, applicable to transactions such as lump-sum investments, Systematic Investment Plans (SIPs), Systematic Transfer Plans (STPs), and dividend reinvestments. 0.005% of the investment amount. Deducted from the investment amount at the time of unit allotment. For example, investing ₹1,00,000 would incur a stamp duty of ₹5, resulting in an effective investment of ₹99,995. Levied by Government of India.
Securities Transaction Tax (STT) - A tax imposed only on the sale of equity-oriented mutual fund units i.e. 0.001% of the redemption value. For example, redeeming units worth ₹1,00,000 would incur an STT of ₹1. Levied by Government of India.
Exit Load - A fee charged by the AMC when investors redeem (sell) their units before a specified period, intended to discourage premature withdrawals. This may vary scheme to scheme; typically around 1% if redeemed within one year. Specific exit load details are outlined in each scheme's offer document. For example, redeeming units worth ₹1,00,000 within the specified period with a 1% exit load would result in a charge of ₹1,000. Levied by Asset Management Companies (AMC)
Tax Deducted at Source (TDS) - A tax deducted on dividend income from mutual funds, applicable if the dividend exceeds a certain threshold. 10% on dividend income exceeding ₹5,000 in a financial year. Applicable to dividend payouts; not applicable to growth options. Investors need to report this income and the TDS in their income tax returns. Levied by Government of India.
Charges | Description | Rate | Applicablity | Levied by |
Stamp Duty on Allotment | Tax on purchase of mutual fund units, including lump-sum, SIPs, STPs, and dividend reinvestments. Deducted from the investment amount at the time of unit allotment. | 0.005% of investment amount | On all purchases and reinvestments (lump-sum, SIP, STP, dividend reinvestment) | Government of India |
Securiies Transaction Tax (STT) | Tax on redemption (sale) of equity-oriented mutual fund units. | 0.001% of redemption value | Only on sale of equity-oriented mutual funds | Government of India |
Exit Load | Fee charged for redeeming units before a specific holding period, to discourage early withdrawals | Typically ~1% (varies by scheme) | If redeemed before minimum holding period as per scheme's offer document | Asset Management Company |
Tax Deducted at Source (TDS) | Tax deducted on dividend income if it exceeds ₹5000 ina a financial year. Not applicable for growth option. Must be reported in income tax returns. | 10% on dividend income | Only on dividend payouts (if annual dividend > ₹5,000) | Government of India |
Still feeling stuck?
Try searching for an answer first. If you still need help, create a ticket, and we'll get back to you soon.