AMFI Proposes Tax Changes for Budget 2025

The Association of Mutual Funds in India (AMFI) has urged the government to restore long-term capital gains indexation for debt mutual funds and revert to a 12.5% tax rate for these funds, aiming to create fairness in taxation and encourage long-term investments. AMFI also proposes redefining Equity-Oriented Funds to include Fund of Funds to eliminate tax disadvantages and recommends pension-oriented mutual fund schemes to broaden retirement benefits. Meanwhile, hedge funds like Castle Hook and Light Street Capital have shown impressive performance in 2024, with significant gains attributed to strategic investments amid geopolitical events. The stock markets displayed mixed results in December 2024, with major indices like the S&P 500 and Dow Jones experiencing declines, while Asian markets performed better. As bond yields rise, bifurcation in the market is evident, with large-cap tech stocks outperforming smaller counterparts and US banks facing challenges despite rising yields. Overall, the investment landscape remains dynamic, with AI being highlighted as a critical opportunity for future growth.