Monday, March 27, 2023

My Views on Finance bill 2023, debt mutual funds going forward and tax impact on the same - continue investing with startegic approach

Well put Satya Sontanam , but I feel this is blown out of proportion and turning detrimental in investors interest.

If someone is suggesting any investment just from tax saving or advantage point of view , I feel it calls for a rethink on strategy and approach.

1- There is something called "'pass thru' status" which mutual funds enjoy and so there is tax delay opportunity and even management opportunity instead of compulsion to pay tax in interest in FDs one can manage better

2- Do not forget under Deposit insurance the limit is 5 lac and not unlimited, so if the risk is similar category of default, better diversify rather than (how many banks are you comfortable with to put as FDs?)

3- The tax applicability is on withdrawal, so tax management and optimisation is possible

4- FDs do not offer Capital Gain which these categories of debt funds offers.

5- There is reinvestment risk in falling interest rate scenario even if your need is to invest and hold for long. The yield offered today is much better to lock in.

6- there is also set off opportunity available

7- Now it will blow down to how your planner/advisor can understand and manage better

#financialplanning #taxstrategy #financialplanner #financialfreedom #financialadvisor #mutualfund #mutualfunds #opportunity #investment #financebill2023 #debtmutualfunds


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