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Investment Adviser Level 1
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Sample Test 2
Chapters 5–8 · Schemes, Distribution & Taxation
Question 1 of 20
Chapter 8 - Taxation
How are balanced advantage fund (dynamic asset allocation fund) gains taxed?
A
Always as debt funds since they switch between equity and debt
B
As equity funds (STCG 15%, LTCG 12.5%) if the scheme maintains at least 65% equity on average; otherwise as debt/hybrid — depends on actual equity allocation during the holding period
C
At 20% with indexation regardless of equity allocation
D
BAFs are tax-exempt since they balance risk for investors
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