Budget 2014 and Mutual Funds

The core identity of a mutual fund is that of a professional investment manager. A fund chooses from the securities in the market and builds a portfolio with stated objective. This is diversified and, hence, less risky than direct investment, and is managed to a process. The fund managers charge a fee to do this and are evaluated on the basis of their ability to do better than the market index, which is a passive diversified portfolio.

 This time around, the level playing field got created with bond funds treated on par with other long term assets by making holding period for claiming Long Term Capital Gains made as 36 months from 12 months.

During the debate on the Finance Bill it was clarified by the Finance Minister that the higher long-term capital tax of 20% that he announced in the budget on 10 July will be applicable on all debt funds redeemed after 10 July.

The additional exemption of 50,000 under 80C will provide a limited window for tax exemption eligible mutual fund schemes. Now you can invest 1,50,000 under specified investments and claim tax rebate.

 more at: http://www.moneycontrol.com/news/economy/budget-2014-india-changelong-term-capital-gain-to-impact-mutual-funds_1124081.html?utm_source=ref_article

Another important development is an opportunity to launch pension funds by the mutual funds.

Happy inversting


 

more at: http://www.moneycontrol.com/news/economy/budget-2014-india-changelong-term-capital-gain-to-impact-mutual-funds_1124081.html?utm_source=ref_article

The additional exemption under 80C will provide a limited window for tax exemption eligible mutual fund schemes

Read more at: http://www.moneycontrol.com/news/economy/budget-2014-india-changelong-term-capital-gain-to-impact-mutual-funds_1124081.html?utm_source=ref_article