Every mutual fund comes in two options—growth or dividend/Income Distribution Capital Withdrawal (IDCW). It can be unclear, particularly for first-time investors, which to choose. So here is a closer look at the two options.

When a taxpayer sells a capital asset, short-term capital gain tax is due. In India, for taxation, mutual funds are considered capital assets. As a result, capital gains are due upon redemption or sale of any mutual fund scheme's units. The length of time an investor keeps mutual fund units affects whether a gain is considered to be short-term or long-term. Therefore, you must comprehend the holding duration for each type of mutual fund scheme in order to comprehend the applicability of capital gains. The holding period and appropriate tax rate for each type of scheme are shown in the following table.

Investing in stocks also allows for diversification, reducing risk by spreading investments across different companies and sectors. Moreover, stocks provide liquidity, enabling investors to buy and sell shares easily.

Intraday trading involves buying and selling financial instruments within the same trading day. Traders analyze market trends, use technical analysis tools, and make quick decisions to capitalize on short-term price movements. With leverage and risk management strategies, they aim to maximize profits in a short time. Explore the mechanics of intraday trading and uncover the strategies employed by traders to navigate this fast-paced trading environment.

A Covered Call is an options trading strategy where an investor who owns the underlying asset (such as stocks) sells a call option against it. By doing so, the investor collects a premium from the sale of the call option, which provides income. The strategy aims to profit from the income generated by the premium and potentially from limited gains if the underlying asset's price remains below the call option's strike price. However, the investor's potential upside is capped, as the call option obligates them to sell the asset at the strike price if the stock's price rises above it.

The returns from mutual funds held for longer than a specified period are known as long-term capital gains on mutual funds. Mutual funds pool money from several investors to invest in bonds, stocks, or company shares. To maximise profits for investors, professional fund managers oversee these investments. While Investors get regular dividends, they also profit from capital gains.

The Sensex is currently trading up by 75 points or 0.1%, while the Nifty is trading at 19,439 levels - up 25 points or 0.1%.

Indian share markets are trading on a positive note with the BSE Sensex trading higher by 138 points.

Indian share markets are trading on a flattish note with the BSE Sensex trading higher by 37 points.