gross-vs-net-napkin.xlsx

	B	C	D	E	I	J	K	L	M
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2	Direct Equity vs. Mutual Funds				Gross vs. Net Returns of Direct Equity
3	Identical returns, different tax scenarios				Effect of fees & taxes and portfolio turnover
4	Direct Equity taxed yearly at STCG rates due to rebalancing, etc.
5	Mutual Funds taxed at redemption at LTCG Rates
6	LTCG Rate	10%				Zero Return		Gross/Net Returns
7	STCG Rate	15%			Starting Capital	100		100
8	Annual Return	20%			Monthly Turnover	200%		200%
9	Start	100			Gross Returns	0%	100	20%	120
10		Cumulative Return			STT	0.10%	2.400		2.880
11	Year	Direct Equity	Mutual Fund	Excess Returns	Exchange Tx Charges	0.003450%	0.083		0.099
12	1	117.00	120.00	2.56%	SEBI Turnover fees	0.000150%	0.004		0.004
13	2	136.89	144.00	5.19%	Stamp Duty	0.015%	0.180		0.216
14	3	160.16	172.80	7.89%	Net Returns	-2.6664%	97.334	16.8003%	116.800
15	4	187.39	207.36	10.66%	STCG Tax	15%	0		2.52005
16	5	219.24	248.83	13.50%	After Tax Returns	-2.6664%			14.2803%
17	6	256.52	298.60	16.41%
18	7	300.12	358.32	19.39%
19	8	351.15	429.98	22.45%
20	9	410.84	515.98	25.59%
21	10	480.68	608.85	26.66%
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