Indian investors’ affinity towards debt is going to be dented going forward: Feroze Azeez

The Indian government is likely to remove the long-term capital gain tax benefit from debt mutual fund investments with an upcoming amendment to the Finance Bill. The impact on investors could be significant, as the new amendment will eliminate several categories of investment outside of the long-term capital gain and indexation. Although the change to taxation could result in more investors turning to fixed deposits over debt funds, some finance experts do not think the tax change will result in a shift of capital as many casual investors do not earn more than Rs 15 lakh.