Long term investment story

For those who want to know , how a rational long term investment approach works, here's a story on ET wealth.

"Over the past four decades, not only has he reaped the benefits of investing in equity, but also helped his clients. “I had subscribed to the rights issue of Gammon India and got shares at Rs 6 each. While I sold mine at Rs 120, I advised a client to hold on for a little longer. He sold when the price touched Rs 197.5 with an additional dividend of Rs 2.5 when sold,” he recalls. ...read on at ET"

Know your taxes when investing in GLOBAL funds.

As per the Indian Income tax rules (current), MF schemes that invest at least 65% of their total corpus in Indian equities are only treated as "Equity Funds" for taxation purposes. For such funds the long term capital gains tax is NIL. i.e If you buy an equity fund and sell it after one year, You have no tax burden on the same irrespective of the amount of profit you make.

So,if the Global/ Asian/ Foreign Equity schemes of Indian fund houses invest less than 65% in Indian equities, they are considered like debt funds for taxation purposes.

When you want to invest in a global fund next time, check out its allocation to Indian equity and understand the taxes applicable before you invest.

An intelligent investor always takes applicable tax laws into consideration before he makes an investment decision.

To know more on~~~~~Applicable tax on Debt and Equity MFs

Global fund- select list-ABN AMRO China India Fund, Birla Sunlife International Equity, Tata Indo Global Infrastructure,Sundaram BNP Paribas Global Advantage,Principal global oppurtunities, Kotak global emerging market,Fidelity international oppurtunities,ICICI Indo Asia fund, DWS Gloabl thematic offshore,DSPML world gold.

NFO- opinion

Franklin Asian Equity Fund - Those of who want to spread their portfolio/ risk across Asian markets can apply.

ICICI Prudential Real Estate Securities Fund (The scheme will not be directly owning or holding real estate properties.) is a 3-year close-ended debt fund, designed to invest in Real Estate Sector and real estate oriented sectors like Cement, Construction, Metals, Hotels, Retail, Banks & Finance Companies etc.
The scheme will:
Predominantly invest (51% to 100%) in high yielding debt securities issued by companies that are associated with or benefitting (directly / indirectly) from the real estate sector.
Invest up to 49% in equity of companies, which are engaged in industries that benefit directly or indirectly from the Real Estate Sector or have substantial investments in property (incl. Land holdings).
The initial allocation of the fund will typically be 70% in debt instruments and 30% in equity

and equity related securities.

For all practical purposes this is a DEBT fund and taxes as per debt funds would apply. 30% leverage on Equity is available. This can be considered as an option against FD. However no returns assured!

Applicable tax on Debt and Equity MFs

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NFOs - Global Funds- questions

We get a a lot of questions like" Should I invest in global fund NFOs"?. ( esp . wrt Birla International equity fund and Tata global infrastructure fund")

Refer ~ article which appeared in ideasmoney sometime ago for the same.

Overseas trading facility now offered by ICICIdirect , this is one another first from ICICI. The important point one should keep in mind in investing overseas is the exchange rate movements!! For eg. if you invest in a U.S company and the value of stock goes up by 10% but meanwhile dollar falls against rupee by a greater percentage- you stand to loose and vice versa.

Anyhow, good to see equity investments going really & seamlessly GLOBAL.