Outflow-stricken equity MFs look for boost from Ulip tax changes

Starting this month, new Ulip plans with annual premium of over Rs 2,50,000 are proposed to be taxed in the same way as capital gains on transfer of equity-oriented MF units

ULIP, investment, tax saving

Ulips offers policyholders both insurance as well as the investment option.

Chirag Madia Mumbai
The Rs 30-trillion mutual fund industry is anticipating a boost in investor flows due to change in tax treatment on unit linked insurance plans (Ulip), a product rivalling equity schemes, but offered by the insurance industry.

In January, equity MFs logged their seven straight month of outflows totalling over Rs 42,000 crore.

Starting this month, new Ulip policies with an annual premium of more than Rs 250,000 are proposed to be taxed on the same basis as applicable to capital gains realised on transfer of equity-oriented mutual fund units.

First Published: Feb 19 2021 | 6:38 PM IST

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