Optimising Returns with Smart Investment Strategies

As India’s economy continues to grow, albeit at a slower pace, fostering an environment that encourages long-term savings and investments is crucial. A vital step towards achieving this goal is restoring indexation benefits for Debt Funds, which can significantly boost long-term savings and develop the Indian bond market. Historically, debt fund investments held for over three years were eligible for indexation benefits, shielding investors from inflation’s impact on capital gains. However, the withdrawal of this benefit in the previous budget made debt funds less attractive. [EasyDNNnews:PaidContentStart]

As such, restoring indexation benefits will not only make the debt funds more competitive but also provide investors with a more tax-efficient way to invest in fixed income instruments. While the fate of these changes remains uncertain, investors can minimise their tax incidence through better planning and execution of their investment and utilising the current tax regulation to their advantage. For instance, tax harvesting involves selling underperforming investments to offset capital gains, reducing tax liability and optimising after-tax returns. 

This issue’s cover story dives deep into the world of investment return optimisation, exploring the powerful techniques of tax harvesting, asset allocation and asset location. Discover how these expert strategies can help you unlock your portfolio’s full potential and achieve long-term financial success. In a special report, we shed light on a crucial step in the mutual fund investment process: understanding the factsheet. This essential document holds the key to making informed investment decisions. 

That is because it provides vital information on a fund’s performance, portfolio and strategy. Learn how to decipher the factsheet and gain an insight into a fund’s performance so that you can make smarter investment choices. By leveraging these strategies and staying informed, investors can navigate the complex world of mutual funds and achieve their long-term financial goals. This will be particularly useful for those investors who sometimes invest in mutual funds on the basis of heresy or out of the fear of missing out. Understanding each of the fund you invest in is crucial to building wealth. 

Shashikant Singh
Executive Editor

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