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Govt may deal a tax blow to debt mutual funds; AMC stocks under pressure

If the proposed amendment to the Finance Bill gets cleared, investments across durations will be taxed as STCG

Indian MF industry scaled an all-time high of Rs 35.31 trillion of net AUM as on July 2021 against Rs 31.42 trillion at the end of the last fiscal.

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2 min read Last Updated : Mar 24 2023 | 12:13 PM IST

In a move to remove the tax advantage enjoyed by debt mutual funds over bank fixed deposits, the government has proposed to tax gains arising from debt MFs at the investor's slab rate, irrespective of the investment period.

Shares of asset management companies (AMCs) witnessed sell-off pressure in early trade. HDFC AMC was trading almost 4 per cent lower at 9.15 am.UTI AMC and Aditya Birla Sun Life AMC were down almost 2 per cent. Nippon AMC was trading 1 per cent lower.

At present, debt fund investments of over three years qualify for long-term capital gains tax (LTCG). This

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