Specified Mutual Fund definition revised: funds must invest over sixty five percent in debt/money market, effective April 2026. The amendment redefines Specified Mutual Fund under section 50AA to mean (a) a mutual fund investing more than sixty five percent of its proceeds in debt ... Summary
Specified Mutual Fund definition revised: funds must invest over sixty five percent in debt/money market, effective April 2026.
The amendment redefines Specified Mutual Fund under section 50AA to mean (a) a mutual fund investing more than sixty five percent of its proceeds in debt and money market instruments, or (b) a fund investing sixty five percent or more of its proceeds in units of such a fund. The change clarifies treatment of ETFs, gold funds and Fund of Funds previously affected by the thirty five percent equity threshold and is proposed to be effective from 1 April 2026 for AY 2026 27 onwards.
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