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Capital Gain Calculations for Mutual Funds

MProfit generates separate capital gains reports for Equity MFs and Debt MFs because taxation rules vary for each type. You can also generate two separate reports with indexation and without indexation for Debt MFs (Liquid funds, Income funds, FMPs and Gold ETFs). We give a quick overview of how MProfit handles these calculations and how you can easily generate mutual funds capital gains reports using MProfit.
Getting started:

  • If you are an individual investor, all you need to do is import (upload to MProfit) the consolidated account statement sent by CAMS. This statement includes all types of transactions related to mutual fund schemes managed by CAMS, Karvy and Franklin for your entire family. Most mutual fund schemes are covered under this statement. Click here to learn how to request this file.
  • If you are a financial advisor, you need to import the CAMS WBR2, Karvy 221 and Franklin back-office files which contains mutual fund transactions for all your clients. Click here to learn how to request these files

Here are the MF capital gains calculation methodology that MProfit follows:

  • MProfit follows the First in First Out (FIFO) method for capital gain calculations
  • In the event of consolidation or splitting of units of mutual funds, MProfit automatically calculates capital gain reports based on the adjusted purchase prices. MProfit also takes care of Dividend Reinvestments when calculating capital gains as follows. Dividend Reinvestments are considered as new buy transactions for that particular scheme. When you sell (redeem) units, all new subscriptions (buys) and dividend reinvestment transactions are taken into account and short term and long term capital gains are calculated as per the FIFO rule
  • MProfit also accurately computes capital gains for Switch-In, Switch-Out, STP-In and STP-Out transactions as per income tax rules. STP-In/Switch-In are considered as “buy” transactions in one scheme and STP-Out/Switch-Out are considered as “sell” transactions in another scheme

Here is an example demonstrating how MProfit handles capital gains calculations for MFs:





Short Term Capital Gain

Long Term Capital Gain




















Note: the dividend reinvestment of 100 units with a NAV of 11.00 on 25-Apr-15 is characterized as a new buy transaction.
Capital gain/loss calculation on 15-Dec-15:

  • Total redemption (sale) value = Units ´ NAV = 1,050 ´ 15 = 15,750
  • As per FIFO, 1,000 units bought on 10-Apr-15 and 50 units bought on 25-Apr-15 are sold on 15-Dec-08
  • Total cost = (1,000 ´ 10) + (50 ´ 11) = 10,550
  • Capital gain = 15,750 – 10,550 = 5,200
  • The redemption of all 1,050 units took place within 12 months of subscription (buy) so the 5,200 capital gain is characterised as short term

Capital gain/loss calculation on 02-May-16

  • Total redemption (sale) value = Units ´ NAV = 50 ´ 20 = 1,000
  • Total cost = 50 ´ 11 = 550
  • Capital gain = 1,000 – 550 = 450

The redemption of these 50 units took place after 12 months of subscription so the 450 capital gain is characterised as long term

25 January, 2017