India needs to discourage gold imports to provide adequate capital for higher economic growth. Net import of gold and precious stones in eight years (FY11-18) is estimated to be around $300 billion, more than double of foreign portfolio investments of $145 billion received in the same period.
Currently, long-term capital gains or LTCG on equity mutual funds held over a year are taxed at 10 per cent. This tax is applicable on capital gains of over Rs 1 lakh made in a financial year. If the LTCG goes, returns on equity mutual funds would once again become tax-free. Should you allocate more to equity mutual funds? However, the precarious financial situation may make it difficult for the government to offer many tax cuts to the mutual fund industry.
The finance minister introduced a 10% tax on long term capital gains made in equity schemes over Rs 1 lakh in a financial year, without providing any indexation benefit. The finance minister added that all the gains up to 31st January 2018 will be grandfathered.
The minister also announced 10% dividend distribution tax (DDT) on equity schemes.
Many participants at the ET Wealth Investment Workshop wanted to know when the value funds will regain their lost charm. Nilesh Shetty, co-fund manger of the pioneer value fund, Quantum Long Term Equity Value Fund, responded to their queries in detail.
"The mid-caps and small-caps have been on the receiving end for the past two years and they are looking attractive now. I think 2020 will be the year, when the beaten down mid-caps and small-caps will do well," says Sikka.
The convergence of finance with waste management may seem preposterous and improbable, but lately the concept of ‘Prudent Money Management’ is generating palpable interest among industry savants- conventional and modern alike.