|Risk||Low-medium||Depends on the mutual fund scheme chosen.|
|Tax benefits||Up to Rs. 50,000 investment per year under 80CCD (1B) is tax-free. This is over and above Section 80c limit of 1.5L Quasi-EET – Principle is tax-exempt, 60% of profit is taxable and 40% is tax-free.||For ELSS it is EEE under section 80C. Equity mutual funds: Short-term capital gain tax is applicable, but long-term capital gain is exempted. Debt mutual funds: Short and long-term capital gain tax is applicable|
|Liquidity||Illiquid. Withdrawals from Tier-I account is restricted till the age of 60. And after the age of 60 only a maximum of 60% can be withdrawn, remaining has to be used to buy an annuity.||Liquid. In ELSS there is a lock-in period of 3 years. And in other mutual funds, if you want to withdraw within a year then you would have to pay some charges. But after a year those charges also become nil.|
|Withdrawal||Early withdrawal before the age of 60 is allowed but only 20% can be withdrawn, rest has to be used to purchase an annuity.||Withdrawal cannot be made from ELSS before a period of 3 years. In other mutual funds, there is no such lock in period.|
|Flexibility||Rigid on account of compulsory annuity purchase at the time of withdrawal.||Highly flexible, one can choose how the proceeds would be invested.|
|Choice of assert classes||Limited asset class choices-equities, govt. securities and other fixed income securities.||Numerous asset class choices are available-equity, debt, real estate, money market instruments etc.|
|Investment in equities||There is a maximum limit of 50% to invest in equities||There is no such limit. It is depends on the investors choice and his risk appetite.|
|Investment||The investor has an option to change the scheme preference in active choice.||No such option is available. Investment in asset classes are managed by the fund managers.|
|Cost||Low operational costs||Comparatively high operational costs|
|Returns||Low; maximum cap on equity is 50%||Higher as compared to NPS|
|Maximum age limit||65 years||No maximum age limit|
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As a matter of fact you can watch live market trading that helps you to connect with CMT. Join a Technical Analysis Course which works on real time markets by using tools & techniques . That’ll give you behavioural understanding of real time Share market. Understanding the money management by real time trading or investment activity. As we know CMT is an MCQ Exam & ask question on application level. Create short notes of Course Content. Get PPT based Short Notes & note interpretation of tools & Techniques on technical analysis. Short Notes help you out to quick revision at the CMT exam time. CMT Books have very complicated language & course content is not properly aligned as it takes topics from various books of different writers.
So we have to take individual topics and understand concepts in simple, Concise and Clear manner. Take content from various books or websites like Investopedia or Stock Charts on Each Topic for in-depth understanding. Apply tools & techniques with the help of Technical analysis or trading software’s. Read Books twice as MCQ can be created from a single line. while study mark important topics.