Budget 2020: Will demands of mutual fund industry be fulfilled; will investors benefit? Anand Rathi's Feroze Azeez explains
Just before the budget, the Association of Mutual Funds in India (AMFI) has sent a list of 17 demands to the Finance Ministry. The proposal before the government is to make mutual funds more attractive for investments
Not much time is left in the presentation of Union Budget 2020. And the mutual fund's industry has big expectations from the government. Will Finance Minister Nirmala Sitharaman grant the wishes of the industry? How will the announcements in the Budget 2020 help the mutual fund investors? Deputy CEO Feroz Aziz of Anand Rathi Wealth Management tells us more about this.
Just before the Budget 2020, the Association of Mutual Funds in India (AMFI) sent a list of 17 demands to the Finance Ministry. The proposal before the government is to make mutual funds more attractive for investments and if the announcements with regards to the demands are made in the budget then it will be good news for the investors and they can earn higher profits. What are these proposals?
Aziz tells Zee Business that among the top demands that have been sent to the Finance Ministry for its considerations in the Budget 2020, some of the demands are launching Debt Linked Saving Schemes (DLSS) similar to the Equity Linked Saving Schemes ELSS; tax relief with regard to Longterm Capital Gains on mutual funds and tax parity on Mutual funds and ULIPs.
The mutual fund industry has been demanding a tax relief up to Rs 1.5 lakh investment in DLSS with a lock-in period of 5 years. If this happens the investors will benefit and also small investors will have the opportunity of investing in bond markets. If the proposal is accepted, it will also strengthen the Indian bond markets, Aziz said.
The tax savings for the debt investors will also become like the FD savings.
The equity mutual fund investors will also benefit if the government does away with the longterm capital gains tax in the Budget 2020.
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The tax parity on mutual funds and ULIPs will also create a level playing field for the investors, Aziz said.
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