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Listed Bonds vs Debt MFs – Is There a Tax Alpha?
With Budget 2024 reducing LTCG tax on listed bonds, many investors wonder if they now outperform debt mutual funds. We modelled a falling interest rate scenario and found the tax edge is minimal — just 0.02% more in CAGR over 5 years. When you factor in liquidity, pricing, and complexity, debt mutual funds remain the more efficient and convenient choice.

Otto Money
Jun 273 min read
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