Transfer of fidelity equity fund(growth) to l&t equity fund

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Kapil Tiwari (Querist)
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02 November 2012 I have been investing regularly in Fidelity Equity Fund (Growth). I stopped my SIP as soon as I learnt that L&T Mutual Fund was acquiring the schemes of Fidelity. Over 12 months have passed since I made almost all of my SIP investments (barring the last 4 monthly installments) in Fidelity Equity Fund (Growth).

Hence, the capital gains on all the units purchased (except the last 4 SIP installments) are long term and hence the long term capital gains from the redemption of these units should be exempt from tax and, furthermore, no exit load should be applicable on these units as they have been held for more than 12 months (1 year).

After 15/11/2012, Fidelity mutual fund schemes will be transferred to those of L&T.

Please clarify that even after the units are transferred from Fidelity Equity Fund to L&T Equity Fund, the units purchased by me (except the last 4 SIP installments, mentioned above) will still be considered long term, and hence, even if these units are redeemed immediately after their transfer from Fidelity Equity Fund to L&T Equity Fund, that is, redeemed in the 2ndhalf of November, 2012 itself:

1.the capital gains on redemption of these units will still be exempt from tax

2.the redemption of these units will still not attract any exit load

3.only STT @0.25% on total redemption amount has to be borne by me

I will be thankful to you if you could offer your clarifications at the earliest.

C A S.S.Agarwal, M.Com.,LL.B,

C A S.S.Agarwal, M.Com.,LL.B, (Expert)
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14 November 2012 You are not selling the units. For calculation of Capital Gain there must me some sale. Hence, yuou are continuing to hold the MF and after one year it is under CG

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