Sectors Seek Growth Policies in Budget 2026

“This will provide an alternative fixed income option with tax breaks to retail investors and help retail investors to participate in bond markets at low costs and at a lower risk as compared to equity markets. This will also bring debt-oriented mutual funds on par with tax saving bank fixed deposits, where deduction is available under Section 80C.”

“The industry has requested for an amendment to Finance Act, 2023 and consider the mutual fund units as 'securities', with long-term capital tax rate thereon should be according to / in line with the capital gains tax on listed bonds.”

“We believe that investors should be given an option, as the arbitrage between investing directly in bonds and through mutual funds should be normalised as the latter offers a diversified, more informed portfolio and better management of credit risk.”

“If implemented, this will help reduce the risk of any mishaps in the initial stages of developing the bond market.”

“For an asset allocation perspective, investment decisions should be driven by the risk appetite and investment objective of an individual investor but with differential taxation, investment flow has changed significantly in favour of equities.”