Tax benefit in Mutual Funds!

If you hold onto your mutual fund investments for more than a year, then it gives you a tax benefit. The tax you pay on your earnings is lower than if you invested for a shorter time. More than 1 year implies you will be eligible for long-term capital gains tax provided you sell your MF investments post completion of 1 year. Long-term capital gains tax is 12.5% in comparison to short-term capital gains tax of 20%. Also gains up to Rs.1,25,000/- are exempt from tax.