Latest news with #G-Secs
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Business Standard
21 hours ago
- Business
- Business Standard
4-in-1 Investment: Zerodha's New FoF offers gold, equity, G-Secs in 1 fund
In a move that makes smart investing simpler for everyone, Zerodha Fund House has launched a new offering: Zerodha Multi Asset Passive Fund of Fund (FoF) — a diversified, low-cost fund designed for long-term investors looking for exposure across asset classes without the hassle of managing them individually. What is it? The newly launched Zerodha Multi Asset Passive FoF is a 4-in-1 portfolio that combines: 30% in Equity Large Cap ETFs – tracking India's top 100 companies. 30% in Mid Cap ETFs – capturing fast-growing mid-sized businesses. 25% in Gold ETFs – providing a hedge during equity market volatility. 15% in Government Securities ETFs (G-Secs) – for portfolio stability. This fund aims to follow a balanced approach, taking exposure of close to 30% in Large Cap ETF - following top 100 index which consists of companies that are generally considered the market leaders of their respective sectors, 30% Mid Cap ETF - following mid 150 index which gives exposure to companies with relatively higher growth potential, 25% in Gold ETF - tracking gold which acts as a hedge against equity market uncertainty, 15% in G-sec ETF - investing in government securities with an aim to provide further stability to the portfolio. Why this matters: According to Vishal Jain, CEO, Zerodha Fund House, this fund is ideal for investors looking for a 'ready-made, diversified investment' that requires no active decision-making on asset allocation. With automatic internal rebalancing, investors don't need to shuffle between asset classes themselves. Tax-efficient & accessible One of the biggest advantages of this fund is its tax efficiency — since it rebalances internally, investors only pay capital gains tax when they redeem, not every time the fund reallocates. With a low entry barrier of ₹100, the fund is both affordable and accessible, especially for first-time investors or those seeking a low-maintenance investment vehicle. 'This new fund takes the guesswork out of investing... a no-brainer solution for anyone looking for a simple way to achieve their asset allocation goals,' added Vaibhav Jalan, CBO, Zerodha Fund House. For whom? This fund is best suited for: Zerodha's Multi Asset Passive FoF makes it easier than ever to diversify investments across equities, gold, and bonds, without worrying about frequent adjustments or tax implications.
News18
6 days ago
- Business
- News18
ITR Filing 2025: How Are Debt Mutual Funds Taxed, How To Report Them In Your Income Tax Return?
Last Updated: If you have invested in debt mutual funds and are unsure about the tax implications or how to report them in your ITR, here's everything you need to know. ITR Filing 2025: The income tax return (ITR) filing season for the financial year 2024-25 (assessment year 2025-26) is underway. The last date for filing ITR without audit requirements is September 15, 2025. If you have invested in debt mutual funds and are unsure about the tax implications or how to report them in your ITR, here's everything you need to know. Debt mutual funds invest your money primarily in fixed-income securities like government bonds (G-Secs), corporate bonds, treasury bills, certificates of deposit, and other money market instruments. Their main goal is to generate steady income with relatively lower risk compared to equity funds. However, they are not risk-free and are subject to interest rate fluctuations and credit risk. It is also important to note that international mutual funds like those investing mainly in, let's say, US market or China market, are also treated like debt mutual funds for taxation purposes. Before April 1, 2023, debt mutual funds enjoyed a favourable tax regime. If you held them for over 3 years, gains were considered Long-Term Capital Gains (LTCG) and taxed at 20% with indexation (indexation adjusts your purchase price for inflation, lowering your taxable profit). Gains within 3 years were Short-Term Capital Gains (STCG) taxed as per your income slab. From April 1, 2023, the government removed the special tax status for debt mutual funds. Here's the current tax treatment for redemptions made in FY 2024-25 (AY 2025-26): 1. All Gains Taxed as Income : Regardless of how long you hold them (even for 10 years!), any profit you make on selling units of a debt mutual fund is added to your total income. 2. Taxed at Your Slab Rate: This combined income is then taxed according to your applicable income tax slab rate (5%, 20%, or 30%, plus cess). 3. No Indexation Benefit: The crucial benefit of indexation for long-term holdings is gone for investments made on or after April 1, 2023. 4. No Distinction Between STCG & LTCG: The old concepts of Short-Term (held less than 3 years) and Long-Term (held for 3 years or more) capital gains for tax purposes no longer exist for debt funds under the new regime. How are Equity Mutual Funds Treated? Equity-Oriented Funds (funds investing at least 65% in Indian equities) still have special tax rates. They are treated as equity investments. STCG (Held < 12 months): Gains taxed at 15% sold before July 23, 2024 and 20% if sold after July 23, 2024. LTCG (Held >= 12 months): Gains up to Rs 1.25 lakh during FY25 are tax-free. Gains exceeding Rs 1.25 lakh are taxed at 10% if sold before July 23, 2025 and 12.5% if sold after July 23, 2024. What If You Bought Before April 2023 and Sold During FY 2024-25? You get the benefit of the old tax rules, but only if you held the units for more than 3 years. Holding Period More than 3 Years (Long-Term): Your gain is Long-Term Capital Gain (LTCG) and is taxed at 20% on the indexed gain. For example: Bought in January 2020 for Rs 1,00,000. Sold in May 2024 (FY 2024-25) for Rs 1,50,000. Indexed Cost (approx) = Rs 1,00,000 (CII 2024-25 / CII 2019-20). If indexed cost is Rs 1,20,000, taxable gain = Rs 30,000. Tax = 20% of Rs 30,000 = Rs 6,000 + cess. Holding Period Less than 3 Years (Short-Term): Your gain is Short-Term Capital Gain (STCG). Added to your total income and taxed as per your slab rate (5%/20%/30% + cess). No special rate. What If You Bought After April 2023 and Sold in FY 2024-25? The new rules apply strictly. Holding period does not matter. Your entire profit (sale price minus purchase price, minus any exit load) is added to your total income. It is taxed as per your applicable income tax slab rate (5%/20%/30% + cess). No indexation benefit is available. For example, you bought in June 2023 for Rs 1,00,000. Sold in February 2025 for Rs 1,10,000. Profit = Rs 10,000. If your total income (including this Rs 10,000) falls in the 30% slab, tax on this gain = 30% of Rs 10,000 = Rs 3,000 + cess. How to Show Debt Mutual Funds in ITR-2 and ITR-3? Gains from debt mutual funds (whether under old or new rules) are always treated as 'Capital Gains" for individual investors. They are not considered 'Business Income" unless you are professionally trading mutual funds (which is rare for typical investors). Reporting in ITR-2 and ITR-3: 1. Find Schedule CG (Capital Gains): Both ITR-2 and ITR-3 have a dedicated 'Schedule CG" to report capital gains from assets like mutual funds, stocks, property. Listed Securities (Shares, Mutual Funds etc.): Report gains from debt mutual funds. Differentiate STCG and LTCG (Based on Purchase Date & Holding Period): Column 5a (STCG – Listed Securities): Report gains from debt funds sold within 3 years of purchase (if bought before April 2023) or gains from all debt funds bought after April 2023 (as they are effectively STCG under tax law now). Column 5b (LTCG – Listed Securities): Report gains only from debt funds bought before April 1, 2023, and held for more than 3 years (eligible for 20% with indexation). top videos View all It will require details like Name of the Mutual Fund Scheme, Date of Purchase, Date of Sale/Redemption, Sale Value (Redemption Amount), and Purchase Cost. It is always advisable to check your tax calculations with your financial advisor. About the Author Mohammad Haris Haris is Deputy News Editor (Business) at He writes on various issues related to personal finance, markets, economy and companies. Having over a decade of experience in financial journalism, Haris More Stay updated with all the latest business news, including market trends, stock updates, tax, IPO, banking finance, real estate, savings and investments. Get in-depth analysis, expert opinions, and real-time updates—only on News18. Also Download the News18 App to stay updated! tags : income tax return ITR filing mutual funds view comments Location : New Delhi, India, India First Published: July 23, 2025, 17:01 IST News business » tax ITR Filing 2025: How Are Debt Mutual Funds Taxed, How To Report Them In Your Income Tax Return? Disclaimer: Comments reflect users' views, not News18's. Please keep discussions respectful and constructive. Abusive, defamatory, or illegal comments will be removed. News18 may disable any comment at its discretion. By posting, you agree to our Terms of Use and Privacy Policy.
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Business Standard
16-07-2025
- Business
- Business Standard
Corporate bonds gain favour as government securities' yields remain steady
Debt market investors are reallocating funds to shorter-tenure corporate bonds due to attractive yields, as government securities (G-Secs) yields remain steady. The yield spread between AAA-rated five-year corporate bonds and government securities of similar maturity has widened by 22 basis points since the first week of June. Since the Reserve Bank of India (RBI) cut the policy repo rate by 50 basis points on June 6, yields on government bonds have remained steady, while corporate bond yields have hardened. 'With government bond yields effectively locked in and limited capital gain potential, the richer accrual opportunities in corporate bonds make them more appealing. There is clear interest in blending portfolios that target an overall yield of around 8 per cent,' said Ajay Manglunia, executive director and head of fixed income markets at Capri Global Capital Ltd. 'To achieve that, investors are allocating across both G-Secs and corporate bonds, with the latter offering better carry given the stagnant nature of sovereign yields,' he added. Market participants noted that, given abundant liquidity in the system, demand from banks, mutual funds, and insurance companies for such bonds has surged. With limited supply of short-term G-Secs, and the government's preference for longer-term issuances, corporate bond issuers—especially in the AA/AA+ category—are stepping in to meet demand, flooding the market with short-tenure bonds. Consequently, while demand remains strong, oversupply has led issuers to offer higher yields. Of the Rs 8 trillion the government plans to borrow in the first half of this fiscal year, 75 per cent will be through bonds with tenures of 10 years and above. 'There is a huge supply of corporate bonds now. Appetite is there because of abundant liquidity in the system. Also, there is not much credit demand. Either they are putting it in the Standing Deposit Facility (SDF) or the Variable Rate Reverse Repo (VRRR). So, half of the money that is left, they are trying to put into mutual funds. That is why many mutual funds are becoming anchor investors,' said Venkatakrishnan Srinivasan, founder and managing partner of Rockfort Fincap LLP. The net liquidity in the banking system was in surplus by Rs 2.99 trillion on Tuesday, according to the latest data from the RBI. As long as system liquidity remains elevated, corporate bond supply—especially from private AA-rated issuers—is expected to remain robust.
Time of India
16-07-2025
- Business
- Time of India
Fixed income market outlook: why short-term bonds may outperform in 2H 2025
Tired of too many ads? Remove Ads Geopolitical unrest pushes investors toward bonds Key macro trends shaping Indian bond markets Surplus banking liquidity: Softening inflation: Tired of too many ads? Remove Ads Mixed economic data: Currency stability: Limited upside seen in long bonds Why short-term corporate bonds look attractive Surplus system liquidity and subdued credit growth favor short-end corporate bonds. A shallow rate cut cycle and limited OMO (Open Market Operations) purchases further restrict long-duration bond rallies. Corporate bonds with maturities of 1 to 5 years are expected to outperform long bonds from a risk-reward standpoint. AAA-rated corporate bonds maturing within 3 to 10 years are likely to offer yields between 6.50% and 6.75%, providing incremental gains of 50–100 basis points. Global factors at play Investment strategy: Focus on short to medium duration Maintaining allocations to short- to medium-term bond funds. Gradually adding duration during yield spikes. Favoring government securities (G-Secs) in long-term portfolios while increasing exposure to 1–5-year corporate bonds for better near-term returns. What should investors do? In a world grappling with geopolitical uncertainties and changing interest rate dynamics, India's bond market stands at a crucial to the Fixed Income Market Outlook (July 2025) report by Axis Mutual Fund , abundant liquidity, falling inflation , and a shallow rate cut cycle are shaping a nuanced bond market strategy for the months geopolitical tensions between Israel and Iran have driven global investors towards safer assets like bonds and gold. In the US, 10-year Treasury yields slipped by 17 basis points to 4.23%. Meanwhile, Indian 10-year government bond yields inched up by 3 basis points to settle at 6.32%, largely due to abundant banking liquidity and moderating inflation Reserve Bank of India (RBI) conducted a ₹84,975 crore VRRR (Variable Rate Reverse Repo) auction to manage excess liquidity. Overnight rates are currently trading below the Standing Deposit Facility (SDF), prompting the central bank to maintain short-term policy headline inflation fell to 2.8% in May 2025, thanks to easing food prices and an expected above-normal monsoon. Analysts expect inflation to stay around or below 3% in the near production slowed to 1.2% in May, with the mining and electricity sectors dragging overall growth. However, India posted a robust current account surplus of 1.3% of GDP in Q4FY25—the strongest in over 15 years—driven by resilient service exports and front-loaded goods shipments ahead of US rupee remained broadly stable against the US dollar, as the greenback weakened against most major bond markets have benefited from a strong rally over the past 12 months, analysts now expect the upside to be limited, particularly for long-duration government bonds. With much of the rate-cut-driven rally already priced in (10-year yields have already fallen by 70–75 bps over the last year), experts predict that yields will likely remain range-bound between 6% and 6.40% for 10-year G-Secs in the coming report emphasizes a clear tactical shift towards short-duration bonds. Several factors support this view:Globally, while tariff uncertainties between the US and its trading partners are easing, negotiations remain ongoing. The US Federal Reserve is expected to resume its rate-cutting cycle soon, with two cuts likely in 2025 as growth slows and labor market data weakens. However, the Fed's cautious approach keeps markets the current environment, investment experts recommend:With the bulk of the bond rally behind us, the report advises investors to focus on short-term corporate bond funds and tactical gilt funds. Selective credits also remain attractive due to improving macro fundamentals and corporate short, the fixed-income space continues to offer opportunities—but disciplined portfolio allocation, duration management, and selective sector exposure will be critical for capturing returns in 2H 2025.(Disclaimer: Recommendations, suggestions, views, and opinions given by experts are their own. These do not represent the views of the Economic Times)
Time of India
15-07-2025
- Business
- Time of India
Investors brace for Japan bond market blowout as election nears
Japanese government bond investors are bracing for a potential power shift in upper house elections this weekend that could strain the country's already frail finances, with long-dated yields soaring to all-time highs as the vote nears. Prime Minister Shigeru Ishiba 's sliding popularity suggests even his modest goal of retaining a majority is unachievable, with a new opinion poll from national broadcaster NHK handing the ruling Liberal Democratic Party its lowest score since its return to power in 2012. by Taboola by Taboola Sponsored Links Sponsored Links Promoted Links Promoted Links You May Like Struggling With Belly Fat? Try This at Home Home Fitness Hack Shop Now Undo Defeat in Sunday's vote could bring anything from a shift in the composition of the coalition to Ishiba's resignation, though even the least disruptive scenario is still expected to see more stimulus-minded political viewpoints gain sway. Bonds Corner Powered By Satin Creditcare plans Rs 50-crore NCD issue Satin Creditcare Network is set to raise at least ₹50 crore through the issuance of non-convertible bonds, offering an annual interest rate of 11.5%. The allotment to investors is scheduled for July 21, with a greenshoe option of ₹25 crore. These bonds will be privately placed with institutional investors, and the interest will be paid monthly. ETMarkets Smart Talk: Fixed income attractive with rate cuts ahead; 20–40% allocation advisable for risk hedge, says Tanvi Kanchan India bonds flat ahead of India, US inflation prints RBI to hold buyback auction of 3 G-Secs NSE, BSE issue advisory to bond investors. Here are 10 things to know Browse all Bonds News with All three of the leading opposition parties espouse some form of consumption tax cuts , with the rapidly emerging populist, right-wing Sanseito party proposing a phasing out of VAT altogether. Meanwhile, one of Ishiba's main rivals for leadership of the LDP is reflationist Sanae Takaichi . The 30-year JGB yield jumped to a record 3.195% on Tuesday, while the 20-year yield soared to the highest since November 1999 at 2.65% and the 10-year yield climbed to the highest since October 2008 at 1.595%. Live Events "As the noise towards yet more fiscal spending picks up, we have increased our underweight in Japan as a whole," said Ales Koutny, head of international rates at Vanguard. "Japan is going down a similar path as the UK did a couple of years ago," Koutny said. "If no fiscal restraint, then the bond market will start to put pressure on the economy." Japan's debt burden is the highest in the developed world at about 250% of GDP. Concerns about promises of fiscal largesse from opposition parties helped fuel a sell-off in so-called super-long JGB yields in late May, sending 30-year yields to then-record peaks at 3.185% and 40-year yields to an unprecedented 3.675%. The 40-year bond had yet to trade as of 0325 GMT on Tuesday. The Ministry of Finance was able to restore some calm to the market with plans to reduce issuance of 20-, 30- and 40-year bonds to address a supply-demand imbalance for those tenors, after traditional demand from life insurers dropped sharply this year. Finance Minister Katsunobu Kato said on Tuesday he is monitoring the market situation closely and will continue to work on appropriate debt management to maintain investor confidence. Meanwhile, the Bank of Japan 's reticence to raise interest rates further against an uncertain global economic backdrop has also encouraged investors to stay sidelined. "If such a demand-less market continues and investors foresee no rate hikes within this fiscal year, JGB volatility will go up, especially in the long end," said Kentaro Hatono, a fund manager at Asset Management One, who says he's adopting a "wait-and-see" stance due to the risks of the yield curve steepening after the election outcome. Barclays calculates that the rise in 30-year yields currently factors in about a three percentage-point cut to Japan's 10% consumption tax rate. "Even if the ruling parties retain their majority in the upper house, they would still be unable to pass budget bills, including the upcoming supplementary budget, without the cooperation of the opposition parties," the bank's Japan-based analysts wrote in a research note. "In this context, we believe there will likely be a convergence toward an expansionary budget proposal." Consumption tax cuts have been gaining sway with the public: a recent poll by the Asahi newspaper showed 68% of voters thought a sales tax cut was the best way to cushion the blow from rising living costs. Fiscally hawkish Ishiba has eschewed that option in favour of cash handouts. A poor election result for the ruling coalition will trigger a sell-off in super-long JGBs by so-called real money investors, including life insurers and institutional investors, predicts Toshinobu Chiba, a fund manager at Simplex Asset Management. "If the opposition parties win, the government deficit will see a huge expansion," Chiba said. "The JGB yield curve will steepen by a lot."
