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Economics3h 33m ago
Debt mutual funds lost their indexation benefits after 2023, making their tax treatment similar to fixed deposits, prompting investors to shift to FDs.
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India
Who
Gibin John, Nitin Agrawal, Adhil Shetty
What
Debt mutual funds lost their indexation benefits after 2023, making their tax treatment similar to fixed deposits, prompting investors to shift to FDs.
When
Mon, 15 Jun 2026 15:16:00 GMT · 3h 33m ago
Where
India ·
Why
The removal of indexation benefits reduced the tax appeal of debt funds, which previously made them superior to fixed deposits for medium-term investing.
The Frontline Impact
How this affects you
The change in tax regulations for debt funds has led to many investors considering fixed deposits as a primary alternative, impacting investment strategies for retail investors choosing between these two options. Experts advise considering liquidity, compounding, interest-rate outlook, inflation, and investment horizon beyond just taxation.
Story chain
2 events in this thread- Economics3h 33m agoThe removal of indexation benefits in 2023 reduced the tax appeal of debt funds, prompting many investors to consider fixed deposits, but experts emphasize that factors beyond taxation, such as liquidity, compounding, and interest-rate outlook, remain crucial in this investment decision.Open article
- Currently Reading3h 33m agoDebt mutual funds lost their indexation benefits after 2023, making their tax treatment similar to fixed deposits, prompting investors to shift to FDs.