Why Mutual Fund portfolio now require restructure …. It is just because of below 3 reasons 1. Introduction of LTCG 2. Categorization of Mutual Fund by SEBI 3. Introduction of TRI (Total Return Index) Introduction of LTCG : That means frequent buy and sell of funds will put you in the trap of taxation and on a long run basis your return will reduce. Because each time you redeem you will pay tax and while reinvesting you need to pay upfront expense (applicable in both regular and in direct). Also we need to stop running behind those funds which are giving best return in recent times by churning your portfolio again and again may become fatal. So now your responsibility becomes more to choose right fund and stick to it for a lengthy duration. Categorization of Mutual Fund by SEBI : After new guideline from SEBI , a large cap should only consist of large cap (no mid and small cap) Similarly s...
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