Debt Funds News


Indian banks to gain $36 billion in deposits

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5 Apr 2023

Indian banks to gain $36 billion in deposits as funds get taxed | Mint Primer | Mint

The decision made by India to begin taxing returns from fixed-income mutual funds is expected to strengthen the country's lenders' efforts to attract deposits. This will help in financing a revival in the country's credit growth and increase profits. The nation scrapping tax incentives for some debt mutual funds has paved the way for banks to garner as much as $36 billion in deposits from the asset managers, according to Sunil Mehta, chief executive officer of Indian Banks’ Association, a lenders’ lobbying body. The move comes as a respite for the financiers as the widening gap between credit off-take and deposits has sparked risks of asset-liability mismatches and pushed up funding costs.

5 Apr 2023

Debt Mutual Funds Taxation Rules Amended: How Will It Affect Your Investments?

Starting April 1, 2023, the Budget Bill, 2023 passed in the Lok Sabha today removes the indexation benefit and long-term capital gains tax break from debt mutual funds, exchange-traded funds (ETFs), gold funds, and international funds. This means that any gains (regardless of holding time) from these funds will be taxed at the individual's tax bracket. Debt funds still offer the advantage of deferring tax due, but investors need to be aware of the new tax rate which will apply to their gains. Individuals still have time to take advantage of the indexation benefit before it is removed on April 1, 2023, but the tax rate on the gains will still remain the same. Investors should also be on the lookout for debt funds with a 35% equity allocation to maintain the same tax benefits.

4 min read25 Mar 2023

How debt mutual funds are more tax efficient than bank fixed deposits (FDs)?

For conservative investors, fixed deposits and debt mutual funds are among the most prominent debt investments.

3 min read7 Jan 2023

Interest rates are on the rise, which debt instruments should you choose?

As repo rates were raised by 40 basis points last week, what are the debt funds investors can look at

2 min read10 May 2022
Mutual Funds

'Long duration debt mutual funds suitable for investors with 3-5 years horizon'

Mutual fund managers expect lower returns from the shorter duration funds going forward.

1 min read28 Nov 2020

Debt funds get another layer of safety, equity options increase

Sebi gives regulatory cover to investors, but they still need to evaluate their portfolios before investingLook at portfolios and strategies of schemes, and their suitability to your risk preferences and investing period

4 min read16 Nov 2020

Inflation eats into returns of debt funds in a big way

Real returns from short-term categories hit, long-tenor ones may not replicate gains

3 min read30 Oct 2020

‘Building infra via debt funds can revive India’

Such an approach has a higher multiplier effect on growth, noted IMF

2 min read28 Sep 2020

Sebi chairman proposes four ways to reduce risk in your debt funds

Tyagi said that Sebi was considering setting up a central clearing corporation for repos in investment grade (BBB or higher) corporate bonds with guaranteed settlement.

3 min read23 Sep 2020
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