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24/03/2023 4:37:49 PM | Source: JM Financial Services
Quote on taking away a key tax benefit for debt MF investors by Roopali Prabhu, Private Wealth Group, JM Financia
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Quote on taking away a key tax benefit for debt MF investors by Roopali Prabhu, Private Wealth Group, JM Financia

Below The Quote On Tax Benefit For Debt MF Investors By Roopali Prabhu, Private Wealth Group, JM Financial

 

"The change in debt taxation would meaningfully impact allocation decision. For the same expected return, investors will have to take higher risk going forward. Assuming an investors target return was post tax 7% pa over 3 years, that is currently achievable by investing 100% in a Target maturity fund that invested in AAA papers. Going forward, assuming yields don’t change, the investor will have to invest over 25% in equities (assuming 13% equity return), to achieve the same target return! The change is risk is high"

 

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