![]() ![]() In terms of the overall basket, not just the order book, how do you view the top line space and overall valuation profile of these companies? Of course, short term, there might be a little bit of kneejerk reaction, but I don't think there's a major change there. I don't think there'll be major structural change from the markets' perspective. So I think that should not be there.īut I'm assuming that it will get absorbed. There's no reason for it to be there, especially in the asset class. You have business income or capital gains, as the case may be, and the transaction tax. I am in general not for STT because you can't have twin taxes. Will the hike in STT on futures and options discourage traders or is it more like a sin tax? ![]() But I guess equity continues to remain a robust profile if you look at a slightly longer term view. So, these things can change, but as of now, it looks like that. So to that extent, it is a setback as far as fixed income is concerned. Of course, from a retail perspective, it is still an important option, but FD becomes equally at par. But I'm assuming the current assets should hold steady… Most people will not redeem them very often now and probably that could turn into a long-term asset base, but new assets can be kind of challenging. So, not to say that debt is not important, but to that extent, whatever rules have come, have impacted them. This has been a little bit of a setback, but if you see the profitability of AMCs, they are largely, almost 70 to 80 percent, driven by equity-oriented mutual schemes. How do you read the tax amendment that brings debt mutual funds on par with bank fixed deposits? The former CEO of Edelweiss Securities also doesn’t see any structural change on account of the 25 percent increase in the securities transaction tax (STT) on the sale of futures and options. The change applies to debt mutual funds with less than 35 percent of their assets in equities. Shares of AMCs slumped on March 24 after the finance ministry said the benefit of long-term capital gains tax will not be available for those who invest in debt mutual funds from April 1. The change in tax norms for debt mutual funds may be a setback for asset management companies but more than three-fourths of their profitability is driven by equity-oriented mutual fund schemes, Vikas Khemani, founder of Carnelian Asset Advisors, told Moneycontrol in an exclusive interview. ![]()
0 Comments
Leave a Reply. |