–Vinoth Murugaraj
You are investing in an international fund that invests in overseas stocks. Most international funds stopped accepting money after the mutual fund industry breached the overall limit prescribed by the RBI. Some again started accepting money after huge falls in the overseas stock market. Many fund houses again accepted money in the last week of March as investments made before the end of the financial year will qualify for long term capital gains tax and the indexation benefit. Investments in international funds will be taxed at applicable individual income tax rates. The government took away the benefits of LTCG and indexation available to debt and non-equity schemes. You have to keep these things in mind while deciding on your overseas investments. The government is unlikely to increase the overall limit available to mutual funds soon. Also, even if it allows, you may end up paying higher taxes on these funds.
Finally, if you have invested in the scheme to diversify your portfolio, you may continue to hold on to your investments as you may qualify for LTCG tax after three years. The LTCG tax brings down the tax rate considerably. Also, global markets have given good returns and they may again do better once the the threat of rate hikes, inflation, recession, etc fades away.
