Amfi data suggests LTCG tax is no hurdle for investments in mutual funds

Local stock funds received Rs 1.64 trillion of net inflows in the first 11 months of the year that began April 1

Investors in Indian equity funds are keeping faith unfazed by Long Term Capital Gains tax, on stock holdings, Punjab National Bank fraud scandal and turmoil in global markets.

Equity funds took in Rs 163 billion  ($2.5 billion) in February, after pulling Rs 154 billion in January, data from the Association of Mutual Funds in India show.

Investors held their nerve even after the government’s decision on February 1 to impose a tax on equity gains and dividends from stock funds, a move that coincided with the selloff in markets from the US to Japan. The liquidity has provided a buffer against outflows sparked