Hard assets are what millionaires hold. Yes they their money in the stock market, bonds and Fixed income assets but what they also predominantly invest in is real estate, gold, trading cards, diamonds (even though its value has depreciated)
Big chunk of the paper assets disappeared during the 2008 financial crash. What you will always have is physical assets that you will never lose until you make a sale
Financial assets - FD, Bonds ,equity , REITs, InvITa, ETFs should be encouraged over hard assets.
People launder cash using hard assets whereas financial assets are bought predominantly with tax paid savings.
A BIG reform shud be 10% LTCG on financial assets.
Also taxation would become asset class agnostic. This will deepen bond markets , banks would also get deposits and would get us patient risk capital across equity and bonds
Suggested LTCG
Equity 10% after 12 months
Bond, FD, other listed non equity n Hybrid instruments : 10% after 24 months.
For FPIs- taxation based on residency.