New Tax Rules on Debt Mutual Funds | Fixed Income Alternatives for Investors | LTCG Tax on Debt MF

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Prior to 1st April 2023, capital gains on debt mutual funds were taxed a lower rate and also received indexation benefits. But a recent amendment in the Finance Bill 2023 has stripped them off these long-term capital gain tax benefits which means all debt fund gains will now be taxed per the investor’s tax slab irrespective of the holding period. The government also clarified that a debt fund here means any mutual fund where the equity component is less than 35%

In this video, I look to answer the many questions investors like you have been raising with regards to the new taxation rules around mutual funds, what are the implications of this debt fund tax rule change, why the government has done this and most importantly what can investors now do in terms of investing in fixed income instruments. We look at these questions from the eyes of 4 experts - one each from the banking, mutual fund, insurance and financial planning industry

❤️ I hope you LIKE this video and if you do, then please SHARE it with your friends and well-wishers so that they too can receive the benefits of this knowledge. Thanks!

👉 Video Chapters:
00:00 Tax Matlab No Relax
01:27 Amendment in Finance Bill 2023 affecting Debt Mutual Fund Taxation
02:23 How are Mutual Funds Taxed?
03:51 Why Are Gold & International Funds being taxed at a High Rate?
04:44 Impact of Indexation on Gains from Mutual Funds with Example
06:16 Who is Affected by this Higher Tax Slab for Debt Funds?
07:03 What Happens to my Existing Debt Fund Investments?
08:01 Why Has the Government Change the Long Term Capital Gain Tax Rules?
09:43 Is the Government Trying to Kill the Debt Mutual Fund Industry in India?
12:58 Why are Fixed Deposits so Popular?
14:42 How Important is Taxation when Selecting a Fixed Income Investment Instrument?
15:36 Why is the Conservative Investor's Risk Profile likely to Rise?
16:19 What Should Investors Do? (Mutual Fund Perspective)
19:50 What Should Investors Do? (Banking Perspective)
21:26 What Should Investors Do? (Insurance Perspective)
24:38 What Should Investors Do? (Financial Planning)
26:26 Wrapping it up

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Disclaimer: I am not a SEBI registered investment advisor or research analyst. The content posted on this platform is purely for educational purposes and none of it constitutes investing or trading advice. Viewers should do their own research and diligence before investing or acting on the information presented

[AnshulKhandelwal]

Kailash, Mahadev, Vishvanath, Sadashiv and Shankar!!!

Shows the devotion and depth

Om Namah Shivaay🙏

[SriSuhas]

My god! How are you able to present such complex information sooo creatively❤‍🔥. You have not just explained the changes in taxation but also managed to include suggestions, draw comparisons and even curate all available alternates.🤯 I typically spend 2 hours every day consuming educational content on youtube and your storytelling and presentation skills are the best I've ever come across. 🙌I desperately want more people to consume your content and see your channel get millions of subscribers. Thank you so much for your time and efforts.🙏

[gmsubu]

You have covered all aspects of Debt funds from returns, income taxes angles. Very helpful .
You are right when you say that Debt funds still score over traditional Bank deposits despite the recent adverse amendment in income tax.
Debt funds also give little extra returns during the phase of downward trend in interest rates. Since interest rates have already peaked, we can expect increase in debt fund NAV values

[agytjax]

I really like how none of the panelists were polite and, not shouting, grabbing attention and not interrupting each other (like we see in most TV shows) 😄

[marketingwithmon]

It's always a pleasure to learn from you; not just finance and investing, but also presentation and simplifying the topics at hand. Following (and admiring) you (and your unique views) from ET Money, and just 2 hours ago learned that you have your own YT channel. More happy than you for doing this. Big thank you 💖

[snehilkamal]

My god sir what A Presentation and What Top Notch Content truly Amazing 👏👏😁❤️❤️

[Rushikeshhome]

Amazing explanation but I have a few questions;
1. should I keep putting money in a liquid fund (I have one as an emergency fund)?
2. the answer to the previous is no, then where I can park money?

[kpwilzhimomi]

Just Awesome. Now I understood this new changes on tax on debt fund. Keep educating us. Thank you Sir.

[kamathsonline]

Loved the way you explained from different perspectives of the industry. Regards to all the panelists and thank you for this discussion.
Good screenshots from video to keep handy while making investment decisions and the idea of a new folio is a gift to us, never ever thought of it.
You know this industry much more than most of the finfluencers out there. Not that it's your accountability, but many would have a lot of hope and expectations from you.

[naveensivaraman]

Very good video. Thank you for the wonderful insights.

[pradeepvm]

Thank you on a wonderful presentation, as always. I have been following your presentation from the time in ET money. Always worth the time. 🎉

[DrNikkhil]

It took a while for me to get to this but phenomenal. I just hope you stay true to your roots sir. Love the originality you bring in

[gmsubu]

Excellent tips . We can also consider allocating to SGB Gold bonds which are more tax efficient. There is no Capital gain if held till maturity. You also get 2.5% interest (taxable). The only risk is in the movement of gold prices. My personal opinion is that Indians will always buy gold jewellery and hence we can reasonably expect annual price increase of around 10% in future. We can shift some allocation to SGB instead of shifting to volatile equity.

[agytjax]

In software development, we have something called as Change Request (CR), wherein, imp. features are introduced to a product after it is launched. Sometimes (not always though), CRs are reflect poorly on the business analyst as they failed to incorporate in its first iteration itself.

What FM is doing for the last 3-4 years after presenting the budget is also something similar. All the key/important changes to a budget are rolled out (or sometimes rolled back, like the increase in Corporate Tax) after the budget is passed. Sometimes, the changes are rolled out w/o much fanfare in stealth mode too. I hope FM and her advisors incorporate key changes like this in the first cut itself, so that there is greater chance of it being debated in the Parliament

[jothishivram]

Very nice that you brought all perspectives together. Thank you once again

[rohanjadhav]

Sir, you explain the most complicated concepts so simply. Please enable the join membership feature so that we can support the channel on a monthly basis. Thanks for uploading high-quality content regularly on your channel.

[shilpagupta]

Brilliant content! Brilliant presentation!

[mohammadfiroz]

Great...as always has been... Thank you very much for sharing very valuable information...

[DeepakSingh-fitx]

Great Representation with relevant characters!!

[ImagineCarnage]

The thumbnails always get me 😂. As always learnt something new. Thank you, keep up the excellent work.