How to make more money: 10 smart money moves to improve your finances and grow wealth in 2024
investors. The first shocker came when an amendment to the Budget did away with the indexation benefit that debt funds enjoyed. Capital gains from debt funds, which used to be taxed at 20% after indexation, were now to be taxed at the slab rate applicable to the individual.
In one fell swoop, the Finance Act 2023 removed the tax advantage that debt funds had over fixed deposits.
The other developments were not as jarring. The stock market remained in the doldrums for almost nine months, with the Nifty delivering insipid returns of 5% between January and October. Then it took a shot of adrenaline and rose 15% over the next three months as political uncertainty dissipated.
Small- and mid-cap stocks were in the limelight, with the small-cap index shooting up almost 54%, and the mid-cap index rising almost 45%.
Investors in gold were also pleasantly surprised when the first tranche of the Sovereign Gold Bonds (SGBs) matured in November. Issued in 2015 at Rs.2,684 per gram, the SGBs were redeemed at Rs.6,132, delivering tax-free compounded annual returns of nearly 11%. Investors also received 2.5% interest per year on their holdings, though it was taxable.
Report card 2023
How investments fared during the year.
What’s in store for investors in the new year? Equity markets are on a roll, and it appears that sustained buying will take the Nifty beyond the 22,000 milestone soon.
The bond market is also expecting good news. Though the RBI has kept the rates unchanged, analysts believe there will be rate cuts in 2024.
We reached out to experts to know what investors should do now. While most are optimistic about equity markets, they also advise restraint and tempering of expectations.
