Fund officials want FM to give exclusive tax benefits to investors in equity mutual funds.
Like every year, the mutual fund industry has high expectations from the upcoming Budget which will be presented on February 28. One of the main things which industry officials are expecting is that mutual fund retirement linked products be put under section 80 CCD.
Here is what they expect from the Budget 2015:
Nilesh Sathe, MD & CEO, LIC Nomura Mutual Fund
- Simplification of rules for investments by NRIs from US in Indian mutual fund schemes
- Make Indian equity market accessible to overseas market participants in other Asian countries
- Separate regulator for mutual fund to focus on the growth and penetration of mutual fund
- SIP in equity ETF and index funds should be made eligible investments under section 80 CC and the exclusive limit should be given up to Rs. 50,000
- Some allowance should be given to AMCs for opening offices in tier 2 and tier 3 cities to promote MF business in these areas
We expect a pro investment budget. There should be some tax benefits over and above 80 C for investments in equity mutual funds. We are also hopeful that the FM will put MF linked retirement products under 80 CCD.