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Debt Mutual Funds: The Lok Sabha today, March 24, approved changes to the Finance Bill, 2023, in which Finance Minister Nirmala Sitharaman eliminated the long-term capital gain tax benefit enjoyed by debt mutual fund investors. The modifications provide that debt funds that invest less than 35 per cent in equity shares will be taxed at the income tax bracket level and will be considered short-term capital gains. Similarly, bank fixed deposits are taxed. 
<blockquote>DEBT Mutual Funds पर <a href="https://twitter.com/hashtag/ZeeBusiness?src=hash&amp;ref_src=twsrc%5Etfw">#ZeeBusiness</a> का खास शो- 'DEBT FUND पर डंडा'...
DEBT Mutual Funds से जुड़े आपके सवाल हमें भेजिए <a href="https://twitter.com/hashtag/AnilSinghvi?src=hash&amp;ref_src=twsrc%5Etfw">#AnilSinghvi</a> पर...
देखिए खास शो 'DEBT FUND पर डंडा' <a href="https://twitter.com/AnilSinghvi_?ref_src=twsrc%5Etfw">@AnilSinghvi_</a> के साथ 11:56 AM पर<a href="https://twitter.com/hashtag/MutualFunds?src=hash&amp;ref_src=twsrc%5Etfw">#MutualFunds</a> <a href="https://twitter.com/hashtag/DebtMutualFund?src=hash&amp;ref_src=twsrc%5Etfw">#DebtMutualFund</a> <a href="https://t.co/7ij1Zn7ipl">https://t.co/7ij1Zn7ipl</a>
— Zee Business (@ZeeBusiness) <a href="https://twitter.com/ZeeBusiness/status/1639123511901032448?ref_src=twsrc%5Etfw">March 24, 2023</a></blockquote>
<script async="" src="https://platform.twitter.com/widgets.js" charset="utf-8"></script><h2>How will the amendments impact AMC?  </h2>
In a special segment aired on Zee Business, Vijay Mantri, co-founder, and chief investment strategist, JRL Money said that this amendment won’t have much impact on asset management companies (AMC) as the debt mutual fund has a total investment of Rs 13 lakh crore, and in that, Rs 10 lakh crore is in short term duration.  
“Of the total mutual fund industry, debt mutual fund has Rs 13 lakh crore investments, of which Rs 10 lakh crore is in short-term holding funds such as call money fund, liquid, ultra, floater, money market and low duration fund,” said Mantri.  
Further, he said that the remaining Rs 3 lakh crore is divided among gold fund, fixed maturity plan (FMP), guilt fund, credit fund, target maturity fund, and Bharat Bond.   
<h2>How will the amendment affect investors?  </h2>
According to Mantri, there will not be much impact on investors as all debt funds give a return of 7 to 7.5 per cent on average.  
He also said that investors who have already invested in debt funds before April 1 will not come under the new rule, as the amendment has clearly stated. 
ALSO READ: <a href="https://www.zeebiz.com/markets/stocks/photo-gallery-stocks-to-buy-wealth-creation-pick-tata-motors-dlf-lt-united-spirits-share-price-target-2023-lon-term-anil-singhvi-227411">Anil Singhvi shares his top wealth creation picks, expects two of them to double!  </a>
<h2>What should investors do with debt mutual funds?  </h2>
Vijay recommended holding the funds and whenever investors need money, they can withdraw in parts.  
He suggested examining the portfolio after April 1 and if the tax is high, stop Systematic Investment Plan (SIP) on debt mutual funds and invest in other funds through SIP.  
Catch the latest stock market updates <a href="https://www.zeebiz.com/markets/stocks/live-updates-nifty-live-sensex-anil-singhvi-india-stock-market-accenture-tcs-infosys-it-stocks-credit-suisse-svb-janet-yellen-jerome-powell-hindenburg-adani-dow-live-sail-glenmark-life-dividend-interest-rate-gold-price-forecast-227384">here</a>. For all other news related to business, politics, tech, sports and auto, visit <a href="https://www.zeebiz.com/">Zeebiz.com</a>.

Debt Mutual Funds: The Lok Sabha today, March 24, approved changes to the Finance Bill, 2023, in which Finance Minister Nirmala Sitharaman eliminated the long-term capital gain tax benefit enjoyed by debt mutual fund investors. The modifications provide that debt funds that invest less than 35 per cent in equity shares will be taxed at the income tax bracket level and will be considered short-term capital gains. Similarly, bank fixed deposits are taxed. DEBT Mutual Funds पर #ZeeBusiness का खास शो- 'DEBT FUND पर डंडा'...DEBT Mutual Funds से जुड़े आपके सवाल हमें भेजिए #AnilSinghvi पर...देखिए खास शो 'DEBT FUND पर डंडा' @AnilSinghvi_ के साथ 11:56 AM पर#MutualFunds #DebtMutualFund https://t.co/7ij1Zn7ipl— Zee Business (@ZeeBusiness) March 24, 2023How will the amendments impact AMC?  In a special segment aired on Zee Business, Vijay Mantri, co-founder, and chief investment strategist, JRL Money said that this amendment won’t have much impact on asset management companies (AMC) as the debt mutual fund has a total investment of Rs 13 lakh crore, and in that, Rs 10 lakh crore is in short term duration.  “Of the total mutual fund industry, debt mutual fund has Rs 13 lakh crore investments, of which Rs 10 lakh crore is in short-term holding funds such as call money fund, liquid, ultra, floater, money market and low duration fund,” said Mantri.  Further, he said that the remaining Rs 3 lakh crore is divided among gold fund, fixed maturity plan (FMP), guilt fund, credit fund, target maturity fund, and Bharat Bond.   How will the amendment affect investors?  According to Mantri, there will not be much impact on investors as all debt funds give a return of 7 to 7.5 per cent on average.  He also said that investors who have already invested in debt funds before April 1 will not come under the new rule, as the amendment has clearly stated. ALSO READ: Anil Singhvi shares his top wealth creation picks, expects two of them to double!  What should investors do with debt mutual funds?  Vijay recommended holding the funds and whenever investors need money, they can withdraw in parts.  He suggested examining the portfolio after April 1 and if the tax is high, stop Systematic Investment Plan (SIP) on debt mutual funds and invest in other funds through SIP.  Catch the latest stock market updates here. For all other news related to business, politics, tech, sports and auto, visit Zeebiz.com.    

Debt Mutual Funds: The modifications provide that debt funds that invest less than 35 per cent in equity shares will be taxed at the income tax bracket level and will be considered short-term capital gains.

Finance Minister removes income tax benefit from debt mutual funds, how will investors and AMC be affected?

Debt Mutual Funds: The Lok Sabha today, March 24, approved changes to the Finance Bill, 2023, in which Finance Minister Nirmala Sitharaman eliminated the long-term capital gain tax benefit enjoyed by debt mutual fund investors. The modifications provide that debt funds that invest less than 35 per cent in equity shares will be taxed at the income tax bracket level and will be considered short-term capital gains. Similarly, bank fixed deposits are taxed.  DEBT Mutual Funds पर #ZeeBusiness का खास शो- DEBT FUND पर डंडा... DEBT Mutual Funds से जुड़े आपके सवाल हमें भेजिए #AnilSinghvi पर... देखिए खास शो DEBT FUND पर डंडा @AnilSinghvi_ के साथ 11:56 AM पर#MutualFunds #DebtMutualFund https://t.co/7ij1Zn7ipl — Zee Business (@ZeeBusiness) March 24, 2023 How will the amendments impact AMC?   In a special segment aired on Zee Business, Vijay Mantri, co-founder, and chief investment strategist, JRL Money said that this amendment won’t have much impact on asset management companies (AMC) as the debt mutual fund has a total investment of Rs 13 lakh crore, and in that, Rs 10 lakh crore is in short term duration.   “Of the total mutual fund industry, debt mutual fund has Rs 13 lakh crore investments, of which Rs 10 lakh crore is in short-term holding funds such as call money fund, liquid, ultra, floater, money market and low duration fund,” said Mantri.   Further, he said that the remaining Rs 3 lakh crore is divided among gold fund, fixed maturity plan (FMP), guilt fund, credit fund, target maturity fund, and Bharat Bond.    How will the amendment affect investors?   According to Mantri, there will not be much impact on investors as all debt funds give a return of 7 to 7.5 per cent on average.   He also said that investors who have already invested in debt funds before April 1 will not come under the new rule, as the amendment has clearly stated.  ALSO READ: Anil Singhvi shares his top wealth creation picks, expects two of them to double!   What should investors do with debt mutual funds?   Vijay recommended holding the funds and whenever investors need money, they can withdraw in parts.   He suggested examining the portfolio after April 1 and if the tax is high, stop Systematic Investment Plan (SIP) on debt mutual funds and invest in other funds through SIP.   Catch the latest stock market updates here. For all other news related to business, politics, tech, sports and auto, visit Zeebiz.com.       

Debt Mutual Funds: The modifications provide that debt funds that invest less than 35 per cent in equity shares will be taxed at the income tax bracket level and will be considered short-term capital gains.

Finance Minister removes income tax benefit from debt mutual funds, how will investors and AMC be affected?

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Sirali Gupta

Sub-Editor

Top News

Tolling begins on Dwarka Expressway as NHAI allows three-day relief for local commuters

Seven of top 10 valued firms lose Rs 88,600 crore; Airtel, TCS lead decline

Sugar output to rise 16% in 2025–26; Centre clears 15 lakh tonne exports

China lifts export ban on key materials to US after trade breakthrough: What it means for global tech supply chains

15x15x15 SIP Formula: How to aim for Rs 1 crore corpus with Rs 15,000 monthly investment using this formula

Credit card spending surges 23% in September to Rs 2.17 lakh crore