The mutual fund industry has outlined its wishlist for Union Budget 2026, seeking earlier tax rates on capital gains, restoration of long-term indexation benefits for debt mutual funds, and permission for mutual funds to launch pension-oriented MF schemes (MFLRS) with tax treatment aligned to the NPS.
Sandeep Bagla, CEO of TRUST Mutual Fund, said that he expects stability in taxes, especially around capital gains and pass-through taxation, to help investors plan investment diversification. He added that there could be a reintroduction of tax benefits for fixed income funds, with the caveat of segregation of benefits between actively and passively managed funds.
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