New Delhi, Sept. 15 -- If you are investing in a particular mutual fund, do not assume that all schemes in the same category will be taxed the same way when you redeem.

Capital gains tax depends on the fund's actual portfolio and how it meets the tax law's thresholds.

Here's what mutual fund investors need to know.

Sougata Basu, Founder and CEO, CashRich, explained that mutual funds fall into three broad groups. The Income-tax Act does not use these names, and a scheme's SEBI category does not by itself determine its tax treatment.

Most tax surprises in mutual funds come from that third group. From 1 April 2026, these rules sit in Sections 76, 196, 197 and 198 of the Income-tax Act, 2025. The rates did not change with the new Act or t...