Debt mutual funds see slower inflows than hybrid and equity

Last Update Date: 06-10-2026

Published by Mint

Abhishek Kumar's role: Quoted

Abhishek Kumar explained how capital gains from equity funds and hybrid funds are taxed, depending on their equity share and how long the units are held.

The article reports that debt mutual funds have drawn slower inflows than equity and hybrid funds since late 2023. It links this to the 2023 removal of indexation benefits, which taxes debt fund gains at slab rates, and to lower awareness of debt funds among retail investors. It also notes the industry's request to restore indexation.

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Debt mutual funds see slower inflows than hybrid and equity

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