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Finance bill (Budget) implications on debt funds and REITS

July 3, 2014

1 min read

The presentation revolved around debt funds becoming unattractive on account of tax changes proposed. With the definition of long term being changed from 1 year to 3 years, any redemption within 3 years will attract tax payable at rates as per income tax slab of assesee. In this scenario, tax free bonds are the most attractive.

REITs have been thrown open to the retail segment. With 1 – 2 lac ticket size possible, REITS will give an opportunity to the segment to own real estate through one pass through vehicle. This can give a good fill-up to a retail investor’s portfolio for real estate.

More clarity is expected once amendments are made in the finance bill for tax implications on debt funds of when the applicability will be enforced.

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Rajeev Thakkar

He is the Chief Investment Officer of PPFAS Mutual Fund.

Regarded by many as a polymath, his presentations, cover diverse topics ranging from the state of the shipping industry, corporate leadership, capital allocation and individual companies like Google. His audience usually takes to him wholeheartedly, as he possesses the endearing quality of 'talking to' them and not 'talking down to' them. Apart from them, certain presentations may be made by a few of their colleagues on account of them being well versed with a specific topic.

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