I have gone with your article,recently and agree with your views which has been elaborated nicely,also i would request to please give me guidance regarding my joining to DFDA. I am managing mf assets of rs 21 cr.

Thanks Ashish ji, Nice article .Giving straight and useful information. Change is always good for this industry.Your positive thought for this changes will definitely make us more powerful to work.

Welldone Ashish brother,you always think posite,better.CHANGE ALWAYS BETTER.Lets grow with posite energy.

Lovely article sir. I believe and working on the same perspective since the budget announced. I really like DFDA approach and positive attitude towards all negative news. And I am highly inspired as ever

I agree with everything that has been said by Shri Ashish, except one point which has not been brought out. The changes proposed should be made effective for all investments made AFTER the date of budget. Otherwise it amounts to retrospective change and all investments made even 2 years back and would have qualified for Long Term are sought to be classified as Short Term with retrospective effect

I agree with Ashish that we are sitting on a huge potential for long term assets where we shall be earning good also. The tax arbitrage was always perceived as a short term thing by me which was bound to go anytime as the banking industry was crying hoarse over it. Overall a well written article which has answered many things which we were wanting to be clarified. Long term should be the thinking & the way to look forward. Qudos

Very Analytical, Positive and Straight Forward

My Kudos to Mr.Ashish Goel. I completely agree with is analysis and conclusion. Definitely this is a bitter pill for short term and will help grow the industry in long term. Allow the manufacturers to think, develop and bring in long term products. Distributors/Advisors will think in real long term perspective. Once again my appreciation to Mr.Ashish Goel for thinking differently.

While this article will generate a lot of froth, I respect the passion and spirit behind this piece. There are some candid truths which we need to take cognizance of...Thanks Ashish - for calling a spade a spade and putting things in perspective

very very convincing. congrats.

Wow.. what a perspective.. really loved it.. thank you Ashish for this crude talk, perhaps this is the language the industry understands.. Let us accept the change and start working towards it rather than cribbing about it. Clear examples are people who embraced change after the entry load waiver and the people who kept cribbing.. So stop cribbing, start working !! Whatever happens, happens for good. And yes, high time the industry participants start working as one unified group.

Thanks Sir for your better insight.

The strategy in financial planning to shift to debt funds 2 year prior to reaching the goal has to be preponed for one more year.What about an investor who is doing SIP in a debt fund from from his salary...!! Nonetheless, features like non deduction of TDS, ease of transaction, interoperability, partial withdrawals and much more will find more pitch now (who knows gov might take them away too retrospectively :) )

One point that is missed is the new tax treatment of hybrid products. Very useful products like asset allocation funds, international funds etc will also now have 3 year holding period to qualify for indexation benefit. Surely it is nobodys case that there was any "tax arbirtage" in these products. These at least could have been spared.

Part 3 : Having said all I personally believe we must learn to cope with the changes. Sooner the better. "What cant be cured must be endured" Your article is very timely to cover this aspect and I appreciate your approach. Warm regards, Ajit Singh, Director & Co- founder AU Mutuals Financial Planners Pvt Ltd

Part 2 : With greatest regards to you for your thought provoking ideas, may I request you share a befitting reason why a retail investor belonging to a --10% bracket/no tax bracket-- should choose to invest in a Debt Mutual Fund instead of a Bank Fixed deposit purely from the perspective of an investor. We all know that MF debt Funds may invest in papers that can be from low credit category and often it can be volatile. Long term Capital Gains on equity oriented find are currently exempt from tax. Government may like to introduce short term capital gain tax for all holdings below 3 years in a retrospective manner. Most of us would agree that a fair game play is " All players should be made aware about the rule of the game before they start playing and certainly not after they are into the game much after "

Dear Mr Ashish, This is with regards to your contrarian perspective in todays post. My response is exceeding 1000 character and hence I am posting in parts. I understand one must not resist to change, if the same is imminent. Government has made its mind to mop up tax this way, even if it is retrospective in nature. Rules are enforced with greatest might to those who find themselves incapable and inefficient in representing their cause. While I agree to large parts of your presentation, one cant deny the fact that such uncertain environment are sure business sentiment dampener.

Debt Fund Taxes will be a mind boggling 8000 crores is a myth since the new tax regime will kick in from 10 July 2014 only. AMC have already started concentrating on 3+ yr FMPs which will not produce this amount of tax for the Govt.

Good perspective and valuable thoughts.

Another take away form these changes is that we all need to put in more efforts in educating investors to embrace equities.

Enjoyed your article, Ashish. I was very pleased to see this change in the Budget - kathni aur kahni will align. I freaked at the 2 billion extra tax revenue the Government has picked up - while I may not agree with Ashish on some of his convictions, his passion for the business, I adore. Ashish has truly set the cat among the pigeons!

Very well articulated Ashish. Debt and Equity are two pillars of investment. To plan for financial goals of retail investors, both are equally important. As rightly mentioned, now debt shall also be looked as asset allocation tool rather than a short term product.

what said is absolute right. Govt has moved in the right direction. This correction in the tax arbitrage was needed for the betterment of retail investors.I fully endorse your views.We should think long term rather than having short term view