Debt Funds and FMPs- What Now? Part 2- Why Tax Can't be Avoided

Posted by: Uma Shashikant on Sun, Aug 3rd, 2014

This is the full story. There is no real tax arbitrage in a debt fund any more.  SWP or STP, the tax is all the same as long as holding period is less than 36 months.  Read more

Debt Funds and FMPs - What Happens Now?

Posted by: Uma Shashikant on Mon, Jul 28th, 2014

After the amendment to the Finance Bill, debt funds redeemed after July 10 will be subject to new tax rules. What are the choices for investors in FMPs and debt funds?  Read more

The Fiscal Deficit: How Achievable is it?

Posted by: Deepa Vasudevan on Fri, Jul 18th, 2014

The Government has targeted a fiscal deficit of 4.1% of GDP for this year. The achievability of this target depends on key assumptions about growth, exchange rate, fuel prices and overall investment climate. Any deviation of actual conditions from assumed ones will result in a much higher deficit. Read more

How Do Tax Proposals in Budget-2014 Affect Debt Fund and FMP Investors?

Posted by: Uma Shashikant and Arti Anand Bhargava on Sun, Jul 13th, 2014

The benefit of tax arbitrage for debt funds versus bank deposits is now gone. Investors must hold debt funds for three years to qualify for long term capital gains, instead of one. If sold earlier, the gains are added to their income just like they are with fixed deposits. Moreover, the investor pays a higher percentage in the form of DDT.   Read more

ECB: Easing into negative territory

Posted by: Deepa Vasudevan on Mon, Jun 9th, 2014

The European Central Bank made monetary policy history by switching to a negative rate for a key bank deposit rate. Shorn of the novelty, this is a simple strategy to boost bank credit and to control depreciation of the Euro, both with the aim of restoring economic growth. Read more