Index Long Term Strategy involves a combination of three investment instruments, each with its specific taxation implications in India. The allocation comprises 30% in equity, 70% in debt funds, and exposure to Futures & Options (Derivatives). Let’s delve into the tax impact and post-tax returns associated with each component:

• Equity (30% Allocation):
  • Taxation: Falls under Long Term Capital Gains (LTCG) after holding for a minimum period of 1 year.
  • Post-tax Returns: Dependent on the investor’s tax slab.
• Debt Funds (70% Allocation):
  • Taxation: Considered as Long Term Capital Gains (LTCG) after a holding period of 3 years.
  • Post-tax Returns: Affected by the investor’s tax slab.
• Futures & Options (Derivatives):
  • Taxation: Treated as business income, and income tax is applicable according to the investor’s tax slab.
  • Post-tax Returns: Varied based on the tax slab of the investor.

Post-Tax Returns in Index Long Term Strategy: