Posted at 12:50 PM , on January 20, 2020
Mutual funds have been disappointed over the last two years as there has been little respite in the Budget. This time around, mutual funds will look at parity on a number of areas plus a reversal of some of the recent measures pertaining to capital gains tax and the tax on distribution of dividends by MFs.
Time to bring in DLSS
While ELSS has become extremely popular as a tax saving instrument, one argument has been that it forces people to take on risk. The answer could be in extending these Section 80C benefits to debt funds too and introduce a separate DLSS classification for the same. Of course, the lock-in period can be either retained at 3 years or extended to 5 years. The idea is that conservative investors need not be penalized when their financial plan dictates caution.
Parity with ULIPs and NPS
This has been a persistent demand of AMFI over the last few years. The first demand is to put pension plans of mutual funds at par with the National Pension Scheme (NPS) in terms of tax benefits. That will entail extending the additional exemption of Rs.50,000 on NPS to pension plans too. Secondly, while equity MFs are subject to LTCG tax, the ULIPs are exempt from any form of capital gains tax. This puts the mutual funds at a disadvantage and AMFI has been demanding parity.
Posted at 6:21 PM , on February 2, 2016
Three key sectors could drive a Nifty Bounce from here…
After the rabid correction in January, the markets seem to be finally returning to a semblance of normalcy. The trigger may have been the slightly dovish language of the US Fed in its recent FOMC analysis. That raises the hope that the Fed may not actually hike rates in March and put it off to the second half. The question is; if the Nifty bounces from here what sectors could be the driving forces to focus on? Continue reading
Posted at 6:38 PM , on July 20, 2015
Over the last few days, there is a sense of euphoria in the global markets due to the belief that the Greek problem has been resolved for good. India has been no exception and the Nifty has celebrated the resolution of the Greek problem by jumping nearly 300 points. The question, however, is whether the Greek problem has actually found a solution? Or is it that just the inevitable has been postponed and markets worldwide are celebrating too early? Continue reading
Posted at 5:46 PM , on July 20, 2015
What every Indian investor needs to ask…
After touching a peak of 9122 in March 2015, the Nifty has drifted in a range of 1000 points. Typically, any move closer to the 8000 level has attracted buying support and any move closer to the 9000 mark has attracted selling. It is time to ask a pertinent question. Are current valuations for Indian markets justified? Or are we thriving on hope? Continue reading