Sebi in June 2022 had mandated nominations or opting out of nominations for all the existing individual unitholders.
Tax treatment for gains made on investments through NPS Tier-II accounts ought to be similar to that of mutual funds, but remains a grey area in the absence of a formal government notification, say tax experts
Though there is a clear tilt towards open-ended funds, some wealth managers prefer to play it safe with target maturity funds (TMFs). Broadly, it makes sense to invest in a scheme the duration of which matches your investment time-frame.
Finance minister Nirmala Sitaraman proposed the amendment to introduce marginal relief, implying that the tax liability cannot be greater than the income that exceeds the threshold.
BOI AXA M & I Fund - Direct (G)
Axis Small Cap Fund - Direct (G)
Invesco India Infra. -Direct (G)
BOI AXA M & I Fund (G)
Axis Small Cap Fund (G)
|S&P BSE Smallcap||26159.03||-207.42||-0.79|
|S&P BSE Midcap||23446.74||-99.06||-0.42|
|S&P BSE Capital Goods||33487.82||-262.36||-0.78|
With the indexation benefits gone, debt funds will focus on generating better returns compared to bank fixed deposits. If that happens, they will still be a good bet for long-term fixed-income investors
Though experts are recommending short to medium-duration products for the regular investor, savvy investors are eyeing long-duration funds like Bharat Bond 2031 ETF and Bharat Bond 2032 ETF as well.
Investors should look at their asset allocation, and if there’s a need to buy more international funds, only then should they invest. Taxation shouldn’t be the only reason to invest, experts say
In a big blow to mutual fund (MF) investors, capital gains from debt funds and certain other categories of non-equity MFs are set to be taxed at a higher rate.
The amendment to the Finance Bill, 2023, proposes to bring taxation of debt mutual funds on par with other debt instruments, like fixed deposits, by abolishing long-term capital gains. This also closes the indexation facility that came with it.