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