In the full budget of the Modi 3.0 government presented in July 2024, Finance Minister, Ms Nirmala Sitharaman ended up upsetting market participants by increasing the capital gain tax. With respect to listed debt securities such as bonds, debentures, etc., the Long Term Capital Gain (LTCG) tax was increased to 12.5% from the previous 10%, with no indexation…
The data of the Association of Mutual Funds in India (AMFI) reveals that a predominant portion (over 60%) of the Indian mutual fund industry’s assets comes from individual investors. Individual investors are deploying their money into equity-oriented mutual fund schemes in the desire to earn better returns as opposed to investing in bank Fixed Deposits (FDs) and other interest-yielding investment instruments.…
Despite the geopolitical tensions (Russia-Ukraine war, Israel-Hamas war, attack by Israel on Lebanon to target Hezbollah, likely escalation in the Middle East, tensions flaring up in the South China Sea between China and Philippines, China and Taiwan, strained US-China relations and trade war, among others), risk of geoeconomic fragmentation, adverse climate events, the risk to…
After numerous cases of front-running, the Indian mutual fund industry body, the Association of Mutual Funds in India (AMFI) has come up with Standard Operating Procedures (SOPs) to keep a check on instances of front-running. This comes after the capital market regulator, the Securities and Exchange Board of India (SEBI), earlier this month, came out with a circular asking mutual…
In this day and age of smartphones and technology at your fingertips, getting many tasks done has become easy — be it ordering groceries, food from a restaurant, buying furniture, availing of housekeeping services, to even investing. Surely, technology is playing the role of enabler in our lives. If you are considering investing in mutual funds to…
Against the backdrop of intense volatility in the Indian equity market, I wrote an article recently explaining when investors should sell their mutual fund units. I stated therein that there ought to be strong and valid reasons to sell or redeem your mutual fund units, and this decision, mustn’t be taken arbitrarily. Selling is an important…
The capital market regulator, vide a consultation paper dated July 16, 2024, has proposed the introduction of New Asset Class for investors. The New Asset Class, according to the regulator, will be a new investment product that bridges the gap between mutual funds and Portfolio Management Services (PMS) in terms of flexibility in portfolio construction. It is aimed at…
The full budget 2024-25 of the Modi 3.0, a coalition government, will be presented on July 23, 2024. It will be Finance Minister, Ms Nirmala Sitharaman’s seventh budget and many expectations are doing the rounds. Simplification of the current tax regime is one of the significant ones. There are also speculations that Modi 3.0 would…
With Modi 3.0, a coalition government formed with support from TDP, JDU, and other allies, all eyes are now on the full budget for 2024-25. Several individuals and industries have expectations from the finance minister, Ms. Nirmala Sitharaman hoping that their concerns and proposals will be heard as well addressed. The Indian mutual fund industry…
The Indian equity market has scaled to a new lifetime high of 80,893.51 points on the BSE Sensex (on July 12, 2024). Despite several risks in play, such as the rising geopolitical tensions, spike in volatility in the financial markets during the 2024 Lok Sabha elections, valuation concerns, tighter global financial conditions, and vacillating FPI…
