Taxation angle : This is a major disadvantage global investors have to bear with. While long-term capital gains from equities listed in India are tax free, they are taxable for foreign stocks. So be prepared to dole out long-term capital gains tax at 20%, but only after indexation to factor in inflation
For the passive investor:
Not comfortable venturing out? There are several global diversification options available for you here as well. The first option is India depository receipts (IDRs) of global stocks listed in India. Standard Chartered Bank (SCB) IDR, the only option available at present, offers good value
Taxation :
There is no confusion with regard to taxation here. It will be treated as debt scheme. So investors have to hold on for a year to take the benefit of long-term capital gains tax. Another option is to use the domestic mutual funds that invest a small portion of their corpus in international markets like Templeton India Equity Income Fund
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