*Save Tax... Invest in our Conservative Hybrid Fund before 31/03/2023

*Note - This is regarding the Long Term Capital Gain taxation perspective as per the new finance bill. Kindly consult your financial advisor for any tax related information applicable to your investment.

As per the latest news, the Finance Ministry has made an amendment to the Finance Bill and done away with the long-term capital gain tax (LTCG) benefit that debt mutual fund investors currently enjoy (The Bill has been passed in Lok Sabha and should be presented in the Rajya Sabha soon). According to the proposed amendments, debt funds having not more than 35% invested in equity shares would be taxed at the income tax slab level and treated as short term capital gain.

In other words, Gains on investments made in such Schemes after April 1,2023 may be taxed at the same rate as that applicable for short term capital gains, irrespective of the Holding period. This rate is currently equivalent to the marginal tax rate payable by each individual investor.

Given that, all investments undertaken before March 31,2023 will continue to enjoy LTCG and Indexation benefits, we suggest you undertake your investment in Parag Parikh Conservative Hybrid Fund (PPCHF) such that the allotment process is completed by March 31, 2023... which in turn will lead you being able to avail of the current regime of 20% capital gains tax after availing of the indexation benefit.

Existing Investments in PPCHF should also be retained as long as possible as they will continue to enjoy the current, concessional LTCG tax rate.

Please Note: The proposal will need to be approved by both Houses of Parliament for it to become law.

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Warm Regards,
Team PPFAS Mutual Fund

Parag Parikh Conservative Hybrid Fund An open-ended hybrid scheme investing predominantly in debt instruments. This product is suitable for investors who are seeking* To generate regular income through investments predominantly in debt and money market instruments. Long term capital appreciation from the portion of equity investments under the scheme. *Investors should consult their financial advisers if in doubt about whether the product is suitable for them.

Riskometer as on February 28, 2023 Note: Click here for Latest Product Label of the Schemes.