Post-indexation fallout: Alternatives to international funds

The loss of indexation benefits on capital gains hasn't just clipped the benefits of debt funds. International funds have been grounded as well because they invest less than 35 per cent of their money in Indian equities. Which is why we'll explore other options for you to continue investing overseas. Option 1: India INX India INX, an international exchange launched by BSE, offers Indian investors a gateway to investing in several countries across the globe. You can also buy a Nasdaq-100 ETF listed on a US stock exchange through this platform. (Please bear in mind that our 'Best Buy' list involves funds that track the Nasdaq-100 index only). And even though there is an investment cap of $250,000 per annum (roughly Rs 2 crore), the limit is sufficient for most investors. Importantly, these investments continue to receive indexation benefits and hold an edge over international mutual funds in terms of post-tax returns. As you can see, investing directly abroad will trump international equity funds purely based on post-tax returns. However, this tax advantage comes with many strings attached. A flat 20 per cent tax