Allocate to US-focused funds despite shifting tax landscape: Experts

Capitalise on the geographical diversification and currency hedge they offer

As the financial year draws to a close, three prominent fund houses —Franklin Templeton, Mirae Asset, and Edelweiss Mutual Fund —recently opened up their international schemes for subscription. Investors who act swiftly and subscribe by today (March 31) will reap the benefits of indexation. However, starting April 1, capital gains from these schemes will be taxed at the investor’s slab rate. Due to these impending tax changes, many investors are questioning the wisdom of investing in international funds, particularly US-focused funds, that have traditionally been popular among Indian investors.

Experts maintain that investors should make their decision based on the