New Delhi, Jan. 31 -- The upcoming Union Budget 2026, should offer respite to debt mutual funds, relieve the capital gains tax burden to assist with long-term retail investor participation, Indian mutual funds have emphasised through their wish list.

In lieu of capital gains taxation hit to mutual fund investors on multiple fronts, the Association of Mutual Funds (AMFI) has requested for restoration of long-term capital gains tax with indexation benefit to assist and encourage investors to stay invested for a longer duration.

Currently, the indexation benefit has been discontinued and all investment gains after the holding period of 1 year face a capital gains tax of 12.5%.

As a result, the debt mutual funds category is bleeding money ...