Indian asset managers fall on likely tax blow for debt mutual funds

Aditya Birla Sun Life Amc

24/03/2023 06:35

** Shares of asset management companies such as HDFC Asset
Management  HDFA.NS , UTI Asset Management  UTIA.NS  and Aditya
Birla Sun Life AMC  ADIE.NS  decline between 2.5% and 5% 
    ** ADIE and Nippon Life India Asset Management  NIPF.NS 
slid to record low in today's session
    ** India may propose that investments in debt mutual funds
be taxed as short-term capital gains, which could strip the
long-term tax benefits that made such investments popular,
Reuters reports
    ** Mutual funds with less than 35% invested in equities are
proposed to treated as short-term, Reuters reports
    ** "Debt mutual funds were getting favourable tax treatment
for indexation and long-term capital gains. That will be removed
with this bill"-Amit Kumar Gupta, founder CIO, Fintrekk Capital
    ** Analysts saw positives for equity products due to higher 
tax on debt mutual funds
    ** "Higher tax on the debt products will encourage more flow
into equity. Definitely a positive for equity," -G Chokkalingam,
founder and head of research, Equinomics Research & Advisory

 (Reporting by Bharath Rajeswaran in Bengaluru)
 ((bharath.rajeswaran@thomsonreuters.com; +91 9769003463))