Adani Enterp. 2429.15↓-10.40(-0.43%)
Adani Ports 736.40↓-7.35(-0.99%)
Apollo Hospitals 4926.65↓-99.80(-1.99%)
Asian Paints 3212.25↓-12.55(-0.39%)
Axis Bank 962.10↓-14.65(-1.50%)
B P C L 361.10↓-7.00(-1.90%)
Bajaj Auto 4800.65↑19.90(0.42%)
Bajaj Finance 7010.10↓-69.85(-0.99%)
Bajaj Finserv 1467.40↓-13.50(-0.91%)
Bharti Airtel 836.00↓-8.25(-0.98%)
Britannia Inds. 4875.05↓-18.10(-0.37%)
Cipla 965.40↑4.95(0.52%)
Coal India 228.10↓-2.60(-1.13%)
Divi's Lab. 3499.70↓-42.40(-1.20%)
Dr Reddy's Labs 4649.40↓-24.35(-0.52%)
Eicher Motors 3657.40↓-70.00(-1.88%)
Grasim Inds 1711.95↓-57.10(-3.23%)
H D F C 2653.80↑5.25(0.20%)
HCL Technologies 1126.75↓-2.30(-0.20%)
HDFC Bank 1608.70↑1.00(0.06%)
HDFC Life Insur. 593.90↓-0.55(-0.09%)
Hero Motocorp 2964.80↑6.80(0.23%)
Hind. Unilever 2679.90↓-36.30(-1.34%)
Hindalco Inds. 418.25↓-4.35(-1.03%)
ICICI Bank 937.90↓-2.30(-0.24%)
IndusInd Bank 1303.85↓-7.35(-0.56%)
Infosys 1282.80↓-6.15(-0.48%)
ITC 442.90↓-1.05(-0.24%)
JSW Steel 748.80↑19.05(2.61%)
Kotak Mah. Bank 1886.50↓-52.90(-2.73%)
Larsen & Toubro 2340.30↑24.80(1.07%)
M & M 1381.05↓-25.35(-1.80%)
Maruti Suzuki 9658.60↓-48.90(-0.50%)
Nestle India 22148.90↓-218.85(-0.98%)
NTPC 182.05↑4.70(2.65%)
O N G C 156.10↑2.25(1.46%)
Power Grid Corpn 241.65↑2.45(1.02%)
Reliance Industr 2499.65↑1.50(0.06%)
SBI Life Insuran 1238.90↓-6.90(-0.55%)
St Bk of India 588.50↓-0.70(-0.12%)
Sun Pharma.Inds. 987.00↓-27.60(-2.72%)
Tata Consumer 807.10↓-16.00(-1.94%)
Tata Motors 559.70↓-8.25(-1.45%)
Tata Steel 111.15↓-0.35(-0.31%)
TCS 3236.45↓-38.45(-1.17%)
Tech Mahindra 1071.30↓-24.40(-2.23%)
Titan Company 2877.00↓-29.95(-1.03%)
UltraTech Cem. 8100.15↓-57.45(-0.70%)
UPL 690.05↓-3.90(-0.56%)
Wipro 399.55↓-3.25(-0.81%)

Proposed tax rejig may trigger outflow from debt MFs into equity: Analysts

The proposed amendment will also affect gold funds and international funds, analysts said, who believe that bank FDs will become more attractive

Analysts see investors move from debt MFs to equities amid tax rejig proposal

Web Exclusive Premium

4 min read Last Updated : Mar 24 2023 | 10:44 PM IST

The proposed changes in the Finance Bill that seek to do away with the indexation benefit on debt mutual funds and treat them at par with bank deposits (FDs) are negative for the MF industry, and could see investors flock to equities, suggest analysts.

The proposed amendment will also affect gold funds and international funds, analysts said, who believe that bank FDs will become more attractive as both – debt funds and bank FDs – will be subject to the same taxability of maturity proceeds. The proposed changes are likely to be implemented from the new fiscal year (2023-24) starting April 01 as the Parliament has apporved amendments to Finane Bill, 2023.

The proposal if implemented, according to said Manish. P Hingar, Founder at Fintoo, a robo advisory firm, may have a negative impact on all debt funds, particularly in the retail category, as ultra-high net worth and high net worth individuals may choose to invest in safe havens like