The government out of the blue had just crapped this indexization benefit that debt mutual funds enjoyed. From April 1 onwards, any new investment will be taxed as per your slab whether you invest and sell it in one month or in 10 years. According to CLSA, roughly about 8 lakh crore rupees is invested in these debt mutual funds. 11-14% of the revenues that mutual fund companies make come from the fee they charge on these products.