As per the proposed amendments in the Finance Bill, 2023, income from any mutual fund investing not more than 35% of its total proceeds in the equity shares of domestic companies, shall be treated as short term capital gains on after April 01, 2023.
Against this backdrop, investors can consider hybrid funds as feasible addition to the portfolio.
Why does investing in Hybrid Funds makes more sense in the Current Scenario?
An investor, who is willing to take additional risk can consider adding hybrid funds (with a gross exposure of over 65% to equities) to his or her portfolio to get incremental exposure to debt on or after April 01, 2023. By investing in these funds, investors can benefit from tax-efficiency, as they will be taxed as equity-oriented funds.
Just like this combination equates to a stressfree experience, allocating to different asset classes helps in making an investor's investment journey less stressful! Why should an investor consider investing in Hybrid Funds? When investing in hybrid funds, investors can
As per The Income Tax Act, 1961, the taxation of capital gains for an equity-oriented fund, for an individual investor, in the short term (holding period less than equal to 12 months), the capital gains are taxed at 15% (plus applicable surcharge and cess). In the long term (holding period greater than 12 months), the capital gains are taxed at 10% (plus applicable surcharge and cess) for gains exceeding INR 1 lakh.
Since the tax levied on the capital gains will be at the investor's personal income tax rate for investments in debt funds on or after April 01, 2023, getting incremental exposure in debt through hybrid funds can be a more tax-efficient route for an individual investor.
この記事は Investors India の May 2023 版に掲載されています。
7 日間の Magzter GOLD 無料トライアルを開始して、何千もの厳選されたプレミアム ストーリー、9,000 以上の雑誌や新聞にアクセスしてください。
すでに購読者です ? サインイン
この記事は Investors India の May 2023 版に掲載されています。
7 日間の Magzter GOLD 無料トライアルを開始して、何千もの厳選されたプレミアム ストーリー、9,000 以上の雑誌や新聞にアクセスしてください。
すでに購読者です? サインイン
ASK THE EXPERT
Ques. One of my friends told me that your company provides detailed Retirement plans. I want to know what is the procedure to get my Retirement plan. I will be retiring in March 2025. R.P Gupta, Noida
How to Naturally Reverse Fatty Liver Disease
The liver, located on the upper-right side of the abdomen, is the body’s largest internal organ and plays a critical role in detoxifying the blood and processing nutrients.
Banking sector which has underperformed in the last two years, now offers a favorable risk-reward profile
Do you think the market is overpriced? Is yes, should investors refrain from investing in index schemes at the current valuation?
India will continue to enjoy benefits of a close US relationship and trade will continue to grow
Q1. The US elections are said to be one of the closest till date, what impact will the election of a Republican / Democratic party have on the US economy and how is that going to affect India in the short as well as the long term?
Understanding Momentum Funds
Momentum funds are a type of investment fund that focuses on companies experiencing positive momentum in factors such as earnings, revenue, and stock price movement.
Risks and opportunities associated with Small Caps
Small-caps are a stock-picker’s paradise.
How to navigate your portfolio through bull market a
Indian equities have been in a bull run for the past four years.
Choosing mutual fund schemes depending on your age to achieve life goals
The choice of mutual fund (MF) scheme might be influenced by one’s risk profile or age.
Thematic Fund Or Sectoral Fund, Which Fund Suits You?
A thematic fund is a type of mutual fund that focuses on investing in companies based on specific themes or trends.
Be Kind To Your Kidneys
The kidney is a vital organ in our body which is four inches long and two and a half inches in width.
