Government Union budget Mutual fund equity schemes and shares have given a big blow to investors. Long -term capital gains tax has been increased to 12.5 percent. Short term capital gains have been increased from 15 per cent to 20 per cent. Security transaction tax has been increased for traders of Futures and Options. The discussion of increasing the long term capital gains tax was going on first by the presentation of the budget. However, the market did not know the increase in three taxes simultaneously. The question is whether investors are changing the investment plan after this shock? To know the answer, Moneycontrol conducted a survey among the market participants. Let’s know its results.
80% of the people said that it would not affect
More than 80 per cent of the market participants in the survey said that their investment plan has not been affected due to the increase in long -term capital gains tax and short -term capital gence tax. Most of the people have said that their attitude towards the market is still positive. About 65 percent of the people in the survey said that they have no plan to revise Sensex and NIFTY after the budget.
Volume not expected to decrease in F&O trading
The government has said that the increase in LTCG and STCG tax has come into force with immediate effect, while the increase in STT on derivatives will be applicable from October 1. The government says that the way people have increased in derivative trade in the last few years, it is going to create anxiety. It is believed that to curb this, the government has increased ACTT on FIDO trade. However, most of the market participants in the survey say that the Volume of F&O will not affect the Volume of STT.
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Investors can increase focus on long -term investment
Not a single participant admitted that the increase in STT will affect F&O’s volume. 45 percent of the people said that they were confident that it would not have any effect, while 55 percent of the people said that it could have an impact. But, they will wait for and see the policy of looking. However, the participants said that the thinking of investors may change if STCG tax is increased from 15 to 20 per cent from 15 per cent. They can increase the focus by investing for long periods.