TAXATION OF DEBT MUTUAL FUNDS
Kotak Mutual Fund launches Crisil-IBX AAA Financial Services Index – SEP 2027 Fund
Kotak Mutual Fund has launched the Kotak Crisil-IBX AAA Financial Services Index – SEP 2027 Fund, an open-ended Target Maturity Debt Index Fund. It invests in CRISIL-IBX AAA Financial Services Index constituents, with a high interest rate and low credit risk.
Best medium duration mutual funds to invest in August 2024
As per Sebi mandate, medium duration funds must invest in debt and money market instruments with Macaulay duration of three to four years. As you can see, these schemes are suitable for investors looking to invest for three to four years or more. However, you should check the portfolio duration of the scheme to ensure that the scheme is in line with your investment horizon.
What are exchange-traded funds (ETFs)
ETFs are available for various asset classes like equity, debt and commodities.
Explained: What is the difference between a fixed deposit and a fixed maturity plan mutual fund?
Whether you choose Fixed Deposits (FDs) or Fixed Maturity Plans (FMPs) hinges on your risk tolerance, tax situation, and investment timeframe. FDs are ideal if you prioritize safety and assured returns. If you're comfortable with some risk for potentially higher returns after taxes, particularly over the long haul, FMPs could be a more suitable choice.
No indexation benefit even for LTCG on debt mutual fund investments made before April 1, 2023
These debt mutual funds taxation rules changed: The government has rationalised the capital gains taxation rules. The new tax rules will impact debt mutual fund investments made on or before March 31, 2024, to avail of the indexation benefit. Redemptions and transfers made on or after July 23, 2024, will be taxed at the new LTCG tax rate of 12.5% without indexation benefit, provided debt mutual funds were held for more than 24 months.
Best banking & PSU mutual funds to invest in August 2024
Mutual fund advisors say banking & PSU debt schemes are ‘relatively’ safe because these schemes invest only in bonds and papers of banks and public sector companies. Since most of these entities are government-backed, they don’t have the credit risk.
- Go To Page 1
Passive Investing Booms: Mutual Funds cross Rs 10 lakh crore AUM
The study revealed that active debt funds saw net inflows of around Rs 1.63 lakh crore in Q1FY25, the highest among all categories. The mutual fund industry as a whole recorded net inflows of approximately Rs 3.25 lakh crore during the April–June quarter, with active equity leading at Rs 2.80 lakh crore, followed by passive equity at Rs 45,000 crore.
Who should consider aggressive hybrid funds?
Financial planners recommended aggressive hybrid funds for first-time investors because they combine equity and debt, offering reduced volatility. The category manages ₹2.19 lakh crore of assets in 31 schemes and has favorable tax treatment. These funds are ideal for conservative investors seeking automatic asset allocation and moderate risk, with a minimum five-year investment horizon.
2 hybrid mutual fund categories offer 16% return in 3 years. Time for a portfolio rejig?
Aggressive hybrid and multi-asset allocation funds delivered an average annual return of 16% over the past three years. Their performance was fueled by positive movements in equity markets, strategic stock picks, and effective debt management. Investors should consider their financial goals when selecting between these funds, with tax considerations as secondary factors.
Zerodha's Nithin Kamath on why ULIPs may not be a smart investment choice for investors
Zerodha's Nithin Kamath argued that ULIPs are the worst when looking for investment and insurance at the same time, and cited the high commissions and limited insurance coverage. He recommended investing in direct mutual funds and purchasing term insurance separately.
Maruti to raise deferred tax liability provision by Rs 850 cr in Q2 on indexation removal
Maruti Suzuki India stated it will raise its deferred tax liability provision by Rs 850 crore, following the withdrawal of the indexation benefit on debt mutual funds in the Finance (No.2) Act 2024. The one-time adjustment will impact profit after tax in the second quarter of the ongoing fiscal year.
New share buyback rules from October 1, 2024: A higher tax for many, but these people will gain
New equity buyback rules: Budget 2024 amended the income tax laws on how share buybacks are taxed. The new laws announced in July will be effective from October 1, 2024. The new laws tax the share buybacks in a similar fashion as dividends are taxed now. The new income tax laws will impact most taxpayers negatively. However, certain taxpayers will gain as well.
IIliquidity risk is far more problematic for senior citizens than equity and debt: Radhika Gupta of Edelweiss Mutual Fund explains
The main problem for senior citizens related to property assets is illiquidity rather than more debt and less equity, said Edelweiss Mutual Fund CEO, Radhika Gupta. According to Gupta, as one grows old, one should get more liquid.
Baroda BNP Paribas Mutual Fund announces merger of medium duration and credit risk fund
Baroda BNP Paribas Mutual Fund has announced the merger of Baroda BNP Paribas Medium Duration Fund and Baroda BNP Paribas Credit Risk Fund. The fund house informed about the merger to its unitholders through a notice-cum-addendum.
Mutual funds are a better investment option than stocks from a tax point of view; know why
The single most important point to be noted is that it’s far more beneficial, from a tax point of view, to invest in mutual funds than stocks. While this has been true since February 2018, the hike in long-term capital gains tax in this year’s Budget has made it that much more important. In any case, even earlier, many investors did not appreciate this about taxation.
Equity MF investments via SIP route scale new monthly peak
"A large number of savers are turning investors," said DP Singh, deputy managing director, SBI Mutual Fund. "Many of them are coming into equity mutual funds through systematic investment plans, to meet their long-term goals."
Equity MF inflows ease 9% to Rs 37,000 cr in July, debt funds fetch Rs 1.19 lakh cr
Equity mutual fund inflows dropped by 9% in July, totaling Rs 37,113 crore, down from Rs 40,608 crore in June. Sectoral/thematic fund inflows also declined by 18%, reaching Rs 18,386 crore. Conversely, debt mutual funds saw a reversal, with inflows of Rs 1.19 lakh crore in July compared to an outflow of Rs 1.07 lakh crore in June.
New capital gains tax after Budget 2024: STCG, LTCG rates on equity, debt MFs, ETFs, gold funds; latest mutual fund tax rules
Mutual fund taxation after Budget 2024: Union Budget 2024 has significantly overhauled capital gains tax on various assets, including mutual funds. The holding periods for short-term and long-term capital gains have been rationalised to 12 and 24 months, respectively. Additionally, the indexation benefit on long-term capital gains has been removed, leading to a uniform tax rate of 12.5% for all asset classes. Short-term capital gains tax on equities and equity-oriented funds has been hiked to 20%. These changes will have a substantial impact on mutual fund returns.
MF Query: Insights on equity & debt funds to manage a Rs 60 lakh-portfolio after Budget 2024
Venkat, a 56-year-old investor, now faces higher taxes on his Equity Savings Fund due to the 2024 budget changes. Expert Aditya Agarwala suggests considering the higher returns of equity funds, which average 12%-15%, before switching to hybrid debt funds that offer lower returns. New tax rates are 12.5%, up from 10%.
Reconsider capital gains tax hike: AMFI releases 6-point demand before Nirmala Sitharaman
AMFI released a six-point budget feedback, requesting changes such as reinstating previous capital gains tax rates and reducing tax on debt mutual funds. They argued that recent tax amendments would deter investors and harm market participation, urging the Finance Ministry for reconsideration to support investment growth.
Best short duration mutual funds to invest in July 2024
According to the Sebi mandate, short duration funds can invest in debt instruments which have maturity between one and three years. That means these schemes are meant for short-term investments of up to three years or more.
Best medium to long duration funds to invest in July 2024
According to Sebi norms, medium to long term funds have a mandate to invest in debt and money market instruments in such a way that the Macaulay's duration of the portfolio is four to seven years. Since these schemes invest in long-term debt instruments, they are considered risky.
Changes in taxation for mutual funds
The Union Budget 2024-25 updated capital gains taxes for financial assets. Equity-oriented mutual funds now have an LTCG tax exemption up to ₹1.25 lakh, with 12.5% tax on gains above. STCG tax increased to 20%. No indexation benefits for any mutual fund scheme, and changes for international funds and gold/silver funds. Debt MFs remain unchanged.
How your mutual fund SIPs would be taxed under the new income tax structure
The tax on short term capital gains and long term capital gains on equity mutual funds have increased after the announcement made in the budget by the Finance Minister Nirmala Sitharaman.
Gold funds, international funds, FoF to benefit from Budget: Radhika Gupta of Edelweiss Mutual Fund
Mutual fund taxation undergoes significant changes post-budget. Long-term investors in gold, international, and fund of funds can benefit. New tax rates for equity funds introduced. Debt funds taxed at marginal income rates, no long-term concept. CEO explains the simplified categories.
Best banking & PSU mutual funds to invest in July 2024
Mutual fund advisors say banking & PSU debt schemes are ‘relatively’ safe because these schemes invest only in bonds and papers of banks and public sector companies. Since most of these entities are government-backed, they don’t have the credit risk.
Budget 2024: Will the indexation benefit on debt mutual fund be back?
Budget 2024: Due to inflation and taxes the real returns of debt mutual funds have turned negative in some cases. Earlier the government used to give indexation benefit on LTCG generated from sale of debt mutual funds, however now this benefit is removed. Will the government reconsider its decision for indexation benefit on debt mutual funds?
Load More
