Equity as an asset class is an important portion of an investor's portfolio. However, tax rules vary for di¬erent types of equity instruments. For example, capital gains tax is based on the period of holding. So for stocks and equity-oriented mutual funds, long-term is de ned as more than 1 year, but for Ulips this parameter doesn’t apply. Taxes reduce the overall returns that you can get from a product. Given that di-erent equity assets attract di¬erenttax rules, an investor must take a careful look at the suitability of an investment in terms of taxes too. Here's a look at what the various taxes are.