2024 on WebNotes

FoF tax (revised 2024)

Tue, 19 May 2026 00:00:00 +0000

The 2024 revised Fund-of-Funds (FoF) tax framework introduced explicit clarity on FoF taxation in India. Following the broader debt mutual fund taxation reform of April 2023 , there was industry-wide uncertainty about how FoFs should be classified for tax purposes: were they “debt MFs” by default (since they hold MF units, not equities directly) or could they be “equity-oriented” if their underlying schemes were equity-oriented?

The 2024 clarification resolved this:

FoFs investing predominantly in equity-oriented domestic mutual funds qualify as equity-oriented for tax purposes (LTCG/STCG per Section 112A / 111A).
International, debt, gold/silver, and commodity FoFs follow the post-2023 slab-rate framework.

For Indian retail investors holding Fund of Funds , the 2024 framework provides clarity on tax outcomes and enables better post-tax return planning.

Revamped factsheet template (2024)

Tue, 19 May 2026 00:00:00 +0000

The revamped factsheet template introduced by AMFI in 2024 expanded the monthly per-scheme disclosure to include additional risk metrics, expanded portfolio breakdowns, and standardised Total Expense Ratio (TER) reporting. The revamp built on the long-standing AMFI standardised factsheet framework to address gaps highlighted by investor advocacy groups, SEBI reviews, and market-conduct findings.

For Indian retail investors, the 2024 revamped factsheet is particularly useful because it surfaces:

More detailed risk metrics (downside-only volatility, max drawdown).
Top-10 holdings PLUS sector concentration HHI.
Concentration risk indicators.
Standardised TER bands and historic TER trend.

2024 changes versus prior template

Additional risk metrics

The prior template showed: Sharpe ratio , standard deviation , beta , r-squared .

Stress testing framework for mutual funds (2024)

Tue, 19 May 2026 00:00:00 +0000

SEBI’s 2024 stress testing framework requires mutual fund schemes, particularly small-cap, mid-cap, and credit-risk funds, to conduct periodic liquidity stress tests and disclose redemption-stress recovery timelines. The framework was introduced in response to concerns about scheme liquidity under adverse market conditions, building on the lessons of the Franklin Templeton April 2020 wind-up and other credit-stress events.

For Indian retail investors holding equity small-cap, mid-cap, or credit-risk schemes, the new framework provides transparency on how quickly the AMC believes it could meet redemption pressure under stress.

AMFI revamped factsheet (2024)

Tue, 12 May 2026 00:00:00 +0000

The AMFI revamped factsheet refers to the updated standardised factsheet template issued by the Association of Mutual Funds in India (AMFI) in 2024, which superseded the previous template and introduced a range of changes to how SEBI -registered asset management companies (AMCs) must present scheme information in their monthly factsheets. The 2024 revision was the most comprehensive overhaul of the factsheet format since the original standardisation effort and was driven by investor feedback, SEBI’s review of disclosure practices, and the need to align the factsheet with the 2021 Risk-O-Meter methodology.