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Budget 2026: Mutual fund investors may get significant relief in Budget 2026. AMFI has demanded tax cuts and new pension schemes, which will increase both your profits and investments.

Budget 2026: Nowadays, everyone wants to become rich, and mutual funds have become the most preferred route for the younger generation. But did you know that the government might take some major decisions in the upcoming budget that could significantly impact the profits you earn on your investments? AMFI, the mutual fund industry body, has put forward some demands to the government, which, if accepted, will make investing even easier for you.

Will the tax burden be reduced now?

When we earn money from the stock market or mutual funds, the government levies a tax on it. Currently, a 12.5% ​​tax is levied on Long Term Capital Gains (LTCG), and there is a demand to reduce it to 10%. Discussions are also underway to reduce the tax on short-term profits. If this happens, your in-hand return will increase. Experts believe that lower taxes will motivate more and more youngsters to start SIPs (Systematic Investment Plans).

Will retirement planning now be done through mutual funds?

Often, we think that pensions are only for government employees, but the scenario is about to change. AMFI wants the government to allow mutual funds to launch pension-focused schemes that also offer tax benefits. This means you can invest in your youth and secure a fixed income for your old age. Along with this, similar to ELSS (tax-saving fund), there are plans to introduce DLSS (Debt Linked Savings Scheme), which would be best for those who want to take less risk.

Will the old benefits return?

In the recent past, some benefits were withdrawn from debt funds (where the risk is low), such as indexation. Indexation means receiving tax benefits that account for inflation. There are demands to reinstate this in the 2026 budget so that returns from debt funds can outpace inflation and investors do not incur losses.