[ad_1]
From April 1, 2023, long-term capital gains tax (LTCG) and indexation benefits for mutual funds investing less than 35% in equity will no longer be available, as amended in the latest Finance Bill. However, you will continue to get LTCG and indexation benefits in schemes that invest 35-65% in equity. Currently, only 9 schemes do this. SEBI introduced a category called Balanced Hybrid funds (BHF) that can invest 40-60% in equities. However, none of the schemes have been classified as BHF so far. There is a requirement that a fund house can have a BHF or an aggressive hybrid fund, according to the regulations. Time will tell how this category will continue to grow, given the new tax benefits.
[ad_2]
Source link