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Mutual Fund
Change debt portfolio to minimize impact of new tax rules

Money Today suggests changes you should make in your debt portfolio to to match your risk profile, maturity and return expectations, while minimising the impact of the new tax rules.

 
 
The Budget proposes to increase the tax on long-term gains from non-equity mutual funds from 10% to 20% after indexation.
The best way to fight inflation, say experts, is to start saving early and investing in assets whose returns beat the inflation rate.
While the gains in the fund are impressive, it is the consistency of the lead over the benchmark that proves that the fund has proven its strategic theory.
Tax saving funds have emerged as the best performing fund category with over 21% average return in the one-year period to 16 April 2014.
BNP Paribas Tax Advantage has a three-year annualised return of 13.36 per cent, compared with the benchmark's 5.42 per cent.
SBI Magnum Equity has a three-year annualised return of 5.63 per cent, compared with the category's 3.70 per cent.
 
 
After delivering negative returns in 2013, gold ETFs have made a comeback this year with their net asset value rising by an average of 4.93% over the past one year.
HDFC Mid-Cap Opportunities has outpaced its benchmark by 10.7pc annually over past 5 years
Franklin India Taxshield has a three-year annualised return of 9.39 per cent, compared with the benchmark's 4.62 per cent.
Axis Long Term Equityhas a three-year annualised return of 12.58%, compared with the benchmark's 1.97%.
Gold ETFs continue to extend their losses as the one-year return dropped to negative 12 per cent on the back of fall in prices of the precious metal in global markets.