Facing the heat

The Budget decision to increase long-term capital gains tax from 10 per cent to 20 per cent, and increase the tenure of its applicability from one year to three, has dimmed the relative attractiveness of fixed maturity plans (FMPs) vis-à-vis bank deposits. This is likely to have an impact on the assets that mutual funds are able to garner under the route in the days ahead.

There has also been confusion over the applicability of the changes to existing investments. FMPs account for more than a third of mutual funds' debt assets of Rs 4.66 lakh crore. The following are the 10 fund houses with the highest proportion of FMP assets