Budget 2020 disappointing the mutual fund investors

Budget 2020 disappointing the mutual fund investors

Both the investors as well as the financial companies were looking forward to all that Budget 2020 would unfold. And ultimately, when it’s there, it's not much good news for the mutual fund investors. The ROI in the Equity mutual fund will be treated as long term gains if it is for a year and hence, there will be a tax of 10% imposed on the gains if it exceeds over a lakh in a financial year. Dig out more detailed information about the budget 2020 news below.

Having failed to reach the higher budget 2020 expectation of people, the finance minister reveals here choice with her second budget which vividly observes that the tax long-term gains are retained. Most of the market experts predicted that the LTCG tax will come to an end but this didn’t happen.

The ROI on the equity mutual fund which is there for more than a year is considered to be a long-term investment and hence, the gains are taxed at a 10% rate if the amount exceeds to more than a lakh. In the budget speech 2016, Arun Jaitely, the finance minister then, reintroduced the LTCG tax.

While he re-introduced the taxation, he also rendered the investors of the equity schemes where the returns which were made before the 31st of January, 2018 were exempted. When a twitter poll showed the outrage of the mutual fund investors were evident. The reintroduction of the LTCG tax yet again shattered the towers of the investors. Some people even showed their distress over the hike of tax deduction which falls under Section 80C.

Whereas some experts still stick to the pint that the investors should not pay much attention to the reintroduction of the LTCG tax. They must know their risk petite and put their capitals for long-term investment to treasure the utmost profit.

This situation is all about how the minds of people lenses it. Looking at a more positive way, one won’t be much affected by such reforms. This is so because taxation is surely not something that governs your gains completely. Other important factors can help you make more money by investing your hard-earned sums in the equity mutual funds.

It is a strong recommendation that investors must focus on the reason why they choose a scheme to invest their money. Equity mutual funds are known for the supreme offers of return for the investors. Tax levied on the sums as per the Budget 2020 won’t make much difference in the overall gains treasure by the investors.