How does taxation differ?
In both PRIM and conventional PMS, every time the manager sells an investment, it creates a short-term or long-term capital gains event, depending on the type of asset, Vikas Gupta, CEO & Strategist at Omniscience Capital, noted.
In a mutual fund, redeeming units also creates a short-term or long-term capital gains event. The timing of the redemption is completely under the investor’s control, he added.