{"id":6575,"date":"2023-03-25T04:32:12","date_gmt":"2023-03-24T23:02:12","guid":{"rendered":"https:\/\/vajiramandravi.com\/current-affairs\/?p=6575"},"modified":"2025-03-27T15:41:23","modified_gmt":"2025-03-27T10:11:23","slug":"debt-mutual-funds","status":"publish","type":"post","link":"https:\/\/vajiramandravi.com\/current-affairs\/debt-mutual-funds\/","title":{"rendered":"Debt mutual funds"},"content":{"rendered":"<h2><strong>About Debt mutual funds:<\/strong><\/h2>\n<ul>\n<li>Debt funds are mutual fund schemes which invest in fixed-income generating securities such as <strong>Commercial Papers<\/strong> (CP), <strong>Certificate of Deposit<\/strong> (CD), Corporate Bonds, T-Bills, government securities and other money market instruments.<\/li>\n<li>These instruments <strong>have a fixed maturity date<\/strong> and interest rate that the buyers could earn till the maturity of the security.<\/li>\n<li>They are considered to be <strong>less volatile than equity funds<\/strong> and are hence ideal for investors who are relatively risk-averse and are looking for stability in their investments.<\/li>\n<\/ul>\n<h3>What is Capital Gain tax?<\/h3>\n<h3>The capital gains tax is <strong>the levy on the profit<\/strong> that an investor makes when an investment is sold. It is owed for the tax year during which the investment is sold.<\/h3>\n<h3>It applies to capital assets, which include <strong>stocks, bonds, digital assets<\/strong> like cryptocurrencies and NFTs, jewellery, coin collections, and real estate.<\/h3>\n<p><strong>Types of capital gain tax<\/strong><\/p>\n<p><strong>Long-term Capital Gains Tax:<\/strong> It is a levy on the profits from the sale of assets held for <strong>more than a year.<\/strong> The rates are 0%, 15%, or 20%, depending on the tax bracket.<\/p>\n<p><strong>Short-term Capital Gains Tax:<\/strong> It applies to assets held for a year or less and is taxed as ordinary income.<\/p>\n<p>&nbsp;<\/p>\n<hr \/>\n<h3>Q1) What Is Commercial Paper?<\/h3>\n<p>Commercial paper is an unsecured, short-term debt instrument issued by corporations. It&#8217;s typically used to finance short-term liabilities such as payroll, accounts payable, and inventories. Commercial paper is usually issued at a discount from face value. It reflects prevailing market interest rates.<\/p>\n<p><strong>Source:<\/strong>\u00a0<a href=\"https:\/\/economictimes.indiatimes.com\/wealth\/tax\/no-ltcg-tax-benefit-on-these-debt-mutual-funds-from-april-1-as-govt-proposes-changes-in-budget-2023\/articleshow\/98958623.cms\" target=\"_blank\" rel=\"nofollow noopener\"><u>No LTCG tax benefit on these debt mutual funds from April 1: Five important queries answered<\/u><\/a><\/p>\n","protected":false},"excerpt":{"rendered":"<p>Debt funds are mutual fund schemes which invest in fixed-income generating securities such as Commercial Papers.<\/p>\n","protected":false},"author":5,"featured_media":6576,"comment_status":"closed","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"_acf_changed":false,"footnotes":""},"categories":[1],"tags":[],"class_list":{"0":"post-6575","1":"post","2":"type-post","3":"status-publish","4":"format-standard","5":"has-post-thumbnail","7":"category-upsc-prelims-current-affairs","8":"no-featured-image-padding"},"acf":[],"_links":{"self":[{"href":"https:\/\/vajiramandravi.com\/current-affairs\/wp-json\/wp\/v2\/posts\/6575","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/vajiramandravi.com\/current-affairs\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/vajiramandravi.com\/current-affairs\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/vajiramandravi.com\/current-affairs\/wp-json\/wp\/v2\/users\/5"}],"replies":[{"embeddable":true,"href":"https:\/\/vajiramandravi.com\/current-affairs\/wp-json\/wp\/v2\/comments?post=6575"}],"version-history":[{"count":0,"href":"https:\/\/vajiramandravi.com\/current-affairs\/wp-json\/wp\/v2\/posts\/6575\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/vajiramandravi.com\/current-affairs\/wp-json\/wp\/v2\/media\/6576"}],"wp:attachment":[{"href":"https:\/\/vajiramandravi.com\/current-affairs\/wp-json\/wp\/v2\/media?parent=6575"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/vajiramandravi.com\/current-affairs\/wp-json\/wp\/v2\/categories?post=6575"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/vajiramandravi.com\/current-affairs\/wp-json\/wp\/v2\/tags?post=6575"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}