Stamp duty is charged at the rate of 0.005% on every transaction as per the government compliance. The duty is charged on all kinds of mutual fund purchases including investments in Systematic Investment Plan (SIP), lump sum, Systematic Transfer Plan (STP), and even dividend investments. Stamp duty will be levied on all types of funds including equity, gold, liquid, and debt. It is to be noted that the charge will be levied only on investment and not on redemption. It is, in one way, a kind of entry load put on the investment by the government. The transfer of mutual fund units between one Demat account and another whether market or off-market, will be charged at 0.015%. The same rate is also applicable for buying mutual fund units listed on stock exchanges including ETFs, closed-ended investments, etc.