LTCG tax not a big negative for equity schemes, say mutual fund CEOs

THE ECONOMIC TIMES Fri, Feb 02, 2018 | 08:10 AM IST Mutual Funds Newsletter

LTCG tax not a big negative for equity schemes, say mutual fund CEOs Equity still remains the lowest taxed investment vehicle and it LTCG Tax will not impact the growing equity and SIP culture amongst retail investors. Introduction of LTCG tax in equity mutual funds may see investors moving to ULIPs The introduction of long term capital gains tax on equity mutual fund schemes may result in some investors moving away from these schemes and opting to invest in ULIPs. Infrastructure mutual funds to gain from higher budgetary allocation Infrastructure sector gets a budgetary allocation of Rs 5.97 lakh crore in 2018-19, an increase of 21 per cent as against revised estimate of last year. Corporate bond mutual fund schemes may benefit from budget proposal Reserve Bank of India has issued guidelines to nudge corporates access bond market. SEBI will also consider mandating, beginning with large Corporates, to meet about one-fourth of their financing needs from the bond market. Be ready to pay LTCG tax of 10 per cent on equity mutual funds You will not get tax-free returns from equity mutual funds anymore. The finance minister has proposed to tax long term capitals gains of over Rs 1 lakh at 10 per cent without indexation benefit in his budget 2018. Top Mutual Funds SCHEME NAME RATING 1 M(%) 6 M(%) 1 YR(%) 3 YRS(%) Mirae Asset India Opportunities Fund Direct- Growth 3.24 10.89 32.67 15.40 JM Core 11 Direct Plan-Growth 1.66 6.09 29.22 15.06 Invesco India Growth Fund Direct-Growth 3.10 12.44 35.62 14.87 Mirae Asset India Opportunities Fund Regular- Growth 3.18 10.49 31.72 14.51 Kotak Select Focus Fund Direct-Growth 2.39 7.57 26.91 14.22 FeaturedDSP BlackRock Small and Mid Cap Direct Plan-Growth ★★★★★ -1.66 8.69 26.34 17.34 Start SIP Government may come up with more ETFs, including debt ETFs, soon Mutual fund investors can expect more Exchange Traded Funds (ETFs) along the lines of Bharat 22 ETF, in the coming year. Equity mutual funds to pay Dividend Distribution Tax of 10 per cent Investors who bank on dividends from equity mutual funds to generate periodic income would be hit by the new budget proposal to tax dividends on equity mutual funds schemes.

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New Fund Offers Fund Name Category Type Open Close Min Inv BOI AXA Midcap Tax Fund Series 1 Direct-D Equity: Tax Saving Closed-end 10 Nov 09 Feb 500.00 BOI AXA Midcap Tax Fund Series 1 Reg-D Equity: Tax Saving Closed-end 10 Nov 09 Feb 500.00 BOI AXA Midcap Tax Fund Series 1 Direct-G Equity: Tax Saving Closed-end 10 Nov 09 Feb 500.00 BOI AXA Midcap Tax Fund Series 1 Reg-G Equity: Tax Saving Closed-end 10 Nov 09 Feb 500.00 SBI Long Term Advantage Fund Series V Reg-G Equity: Tax Saving Closed-end 21 Dec 20 Mar 500.00 More >>

Forthcoming Dividend Fund Name Category Type Record Date Div Per Unit Tata Regular Saving Equity Reg-DM Hybrid: Equity-oriented Open-ended 05 Feb 2018 0.09 Tata Balanced Reg-DM Hybrid: Equity-oriented Open-ended 05 Feb 2018 0.72 Tata Balanced Direct-DM Hybrid: Equity-oriented Open-ended 05 Feb 2018 0.72 ICICI Pru Capital Protection Oriented Ser III Plan E-D Hybrid: Debt-oriented Aggressive Closed-end 05 Feb 2018 0.04 ICICI Pru Capital Protection Oriented Ser III Plan E Direct-D Hybrid: Debt-oriented Aggressive Closed-end 05 Feb 2018 0.04 * Funds with daily dividend distribution frequency options are excluded More >>

Weekly Mutual Funds Activity Date Equity ( Cr.) Debt ( Cr.) Gross Purchase Gross Sale Net Pur./Sale Gross Purchase Gross Sale Net Pur./Sale 30-01-2018 1448.74 397.88 1050.86 4296.16 4353.58 -57.42 25-01-2018 6082.76 6090.84 -8.08 10323.29 5719.98 4603.31 24-01-2018 4262.90 4292.81 -29.91 3211.01 6826.89 -3615.88 23-01-2018 4960.43 4618.21 342.22 3728.98 5560.35 -1831.37 22-01-2018 2880.48 3021.01 -140.53 6791.70 2740.13 4051.57 19-01-2018 3010.25 2448.48 561.77 5340.58 4631.38 709.20 18-01-2018 3535.66 3879.42 -343.76 5371.13 5066.68 304.45 Click here to view all WMF >>

Top Mutual Funds of the week (5-Star Rating) Scheme Name Nav Returns Ratings AUM(Cr.) Style Box Expense Ratio Equility Debt Motilal Oswal MOSt Focused Multicap 35 Fund Direct-Growth 28.4693 0.78 10287.74 - 1.33 Motilal Oswal MOSt Focused Multicap 35 Fund Regular-Growth 27.4442 0.76 10287.74 - 2.12 Motilal Oswal MOSt Focused 25 Fund Direct-Growth 23.6443 0.56 866.97 - 1.32 JM Multi Strategy Direct Plan-Growth 33.7808 0.36 153.37 - 2.89 Motilal Oswal MOSt Focused Long Term Fund Direct-Growth 19.2336 0.30 721.44 - 1.45 Click here to view all TMFW (5 Star) >>

Top Mutual Funds (All Ratings) Scheme Name Nav Returns Ratings AUM(Cr.) Style Box Expense Ratio Equility Debt Click here to view all TMF ( All Ratings) >>

QUICK LINKS - MUTUAL FUND STATS 3 Best Funds- Category Wise Top Tax Saving Schemes Schemes with Lowest Expense Ratio Top Performing Schemes Latest Dividends Schemes with Highest Risk Adjusted Returns Top Star Rated Schemes AUM Monitor Category Performance Exchange traded funds

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