Changes in taxation for debt mutual funds have led to a shift in investment strategy for high net worth individuals. Debt funds no longer offer the same high post-tax return and diversification, requiring investors to look for alternative investments to diversify their portfolio risks. Advisors suggest a three-part investment strategy to replace debt funds that includes high quality debt investments, domestic equity exposure, and other uncorrelated assets like high yield debt instruments, hedge funds, and more. It is expected that the third component will generate around 7-9% post-tax basis and new markets will emerge, though investors may have to sacrifice liquidity.
NBFCs offer strong entry point after recent pullback: Rohit Srivastava
Rohit Srivastava sees positive trends in Indian markets despite volatility from events like Trump’s announcements and RBI policy. He highlights the bullish signals from RMI
April 2, 2025