Here’s what the industry
officials have to say about the Union Budget 2014.
Ashu Suyash, Chief Executive Officer, L&T Mutual Fund
The budget has been disappointing for the domestic debt fund investors. The effective tax rates on dividends declared by debt mutual funds has increased marginally by 5% as has the holding period from 12 months to 36 months. Moreover, long term capital gains will be taxed at 20% instead of the earlier 10% though indexation benefits continue to be available. Nonetheless, fixed income funds continue to be important from an overall asset allocation perspective in investor’s portfolios and from a long term perspective are even more attractive than bank deposits.