- Wealth PMS (50L+)
Nifty 50 gained 2.5% this week but still closed negative on monthly basis. There’s a lot happening in the markets and yet, when you zoom out, things haven’t moved in the last 1 year. Last 1 year has been of Gold dominance in India as it is up 15% Y-o-Y.
This week’s rally was led by Banks & Financial services stocks. Reliance, which is an index in itself, also pulled the index up. Among the losers, we highlight that Media and Auto Index has been the worst performer in the last 5 years. Especially for the Auto sector, it will be interesting to see when the tide will turn.
The finance ministry has just delivered an inswinging yorker to the debt mutual fund industry, which has survived too long with a high backlift. (In less complex language: A surprise that could throw you out of the game)
If you don’t understand cricket, this will sound meaningless, which is exactly what that change sounds like if you don’t invest in debt mutual funds. But for those that do, here’s what’s come about.
Any purchases after 1 April 2023, when sold, will see only short-term capital gains tax. For such funds, it means the gain is just added to your income.
There is no long term capital gains tax on such funds anymore, and this applies to:
Note that this only applies to fresh investments (additional or new). Your current investments continue to benefit from the lower capital gains tax and indexation benefits, no matter when you sell them.
Deepak Shenoy, explains the whole thing in the simplest of language. Check out the full post as he covers:
Read the full post: Debt Mutual Funds will be taxed unfavorably after April 2023
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