As the Union Budget 2024 is to be announced soon the mutual fund investors hopes for debt taxation relief, parity with unit linked insurance plans (ULIPs).
A mutual fund is an investment option where money from many people is pooled together to buy a variety of stocks, bonds, or other securities. This mix of investments is managed by a professional money manager, providing individuals with a portfolio that is structured to match the investment objectives stated in the fund’s prospectus.
India’s mutual fund industry, which crossed Rs 50 lakh crore in assets under management last month, has a gross domestic product ratio of around 15 percent currently, which used to be 7-8 percent, a decade ago. The ratio clearly represents the penetration of mutual funds in India.
In a major setback to mutual fund investors the finance minister Nirmala Sitharaman recently suggested that the interim Budget will not feature “spectacular announcements,” but the possibility of some adjustments should not be completely dismissed, some experts note.
The Union Government in Finance Act 2023 had decided that capital gains from debt funds and certain other categories of non-equity mutual funds would be taxed at a higher rate.
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