Question

what's the difference between mutual funds and pension funds?

Answer 1

One of the main difference between mutual funds and pension funds is that the tax rates applicable. Redemption of mutual funds is indeed done through Swaps and the tax rate that is actually applied here is short term and long term capital gains tax on the whole. However in case of pension funds, it can be seen that that tax rate is actually application cable under the current income slab levels as it is considered income not capital gains. In terms of risk and returns, mutual funds have more risk and returns when compared to that of pension funds on the whole.