What is FATCA in Mutual Funds?
FATCA, or the Foreign Account Tax Compliance Act, is a US tax initiative that requires all financial institutions, including Indian mutual funds, to re port financial transactions of US persons, or entities in which US persons hold a substantial ownership, to relevant tax authorities.The purpose of FATCA is to encourage better tax compliance by preventing US citizens from using financial institutions outside their home country to avoid domestic taxation laws.
Related Articles
What are 'Liquid Funds'?
Liquid funds are debt mutual funds that invest unitholders' money in very short-term market instruments such as Treasury Bills (T-Bills), CBLO, Government Securities (G-Secs) and call money instruments. These investments contain a minuscule amount of ...
What is a 'Direct Plan'?
SEBI has directed Mutual Funds /AMC vide SEBI Circular no. CIR/IMD/DF/21/2012 dated September 13, 2012 to provide a separate plan for direct investments, i.e. investments not routed through a distributor, in existing as well as new schemes. Hence ...
What is Folio No?
A folio number is a very relevant concept in the lexicon of Mutual Funds. Like a bank account number, it is a unique number to identify your holdings with the respective mutual fund. The unique number differs from fund house to fund house. Only an ...
Whom are the Liquid Fund meant for?
Given that they provide ready liquidity, income, and tax-efficiency, retail investors could choose this option as an alternative to bank deposits. However, it suits corporate investors too, due to factors like quick redemption (T+1 working day) and ...
What is STP?
In the case of mutual funds, a STP refers to transfer of money from one scheme to another at pre-determined intervals. Usually, STPs are undertaken from liquid schemes into equity schemes. For instance, Rs. 48000/- is invested into a liquid scheme ...