Boost to Mutual Fund Investments Expected

A significant tax exemption limit increase, alongside a revamped central KYC system and the government's focus on 'ease of doing business', is set to enhance investments into mutual funds. These changes are anticipated to encourage both direct investments and those through the systematic investment plan (SIP) route, according to industry experts.

Revamped Central KYC Registry

The introduction of the revamped Central KYC registry in 2025 is a pivotal move towards simplifying investor onboarding, eliminating redundancies, and increasing transparency in financial transactions. This initiative, combined with the government's ongoing emphasis on creating a business-friendly environment, is expected to make financial markets more accessible and appealing to investors.

New Income Tax Slabs

With the announcement of new income tax slabs, individuals earning up to Rs 12 lakh will be exempt from income tax starting April 1. This policy change is estimated to increase disposable income, potentially leading to higher savings and investments in mutual funds. Industry leaders believe that this could result in a significant uptick in SIP flows, further bolstering the markets.