How much tax do you pay on equity investments?

Equity as an asset class is an important part of an investor’s portfolio. However, tax rules differ for different types of equity instruments. For example, capital gains tax is based on the duration of the holding. So for stock and equity-oriented mutual funds, long duration is defined as more than one year, but for ULIPs this parameter is not applicable. Taxes reduce the total return from a product. Given that different equity assets have different tax rules, an investor should also consider the appropriateness of the investment in terms of taxes. Here’s a look at what the different taxes are.