INCOME TAX29 Sept 2026
Life-cycle mutual funds vs DIY portfolio: Automate investing or manage it yourself for 30 years—what experts suggest | Mint
SEBI now allows life-cycle mutual funds with fixed maturity periods, from 5 to 30 years. These funds slowly shift from equity to debt as your goal nears, so you don't have to rebalance yourself. Only seven such schemes from three fund houses exist today, with no 20 or 25-year option. Choose based on whether your goal date is fixed or flexible.
Key Statutory Highlights
- Life-cycle funds follow a set glide path and change their equity and debt mix automatically as the goal date comes closer.
- As of 29 September, only seven life-cycle fund schemes from three AMCs were available, covering 5, 10, 15 and 30-year horizons.
- Rebalancing done inside a life-cycle fund does not trigger capital gains tax for the investor.
Actionable Advice for Taxpayers / Founders:If your goal date is fixed, such as a child's college admission, compare a life-cycle fund's glide path and exit load before investing. If your goal is flexible, a self-built portfolio may suit you better. Speak to a CA or adviser before deciding.
Statutory Disclaimer: TaxQue Shorts are AI-assisted editorial briefs for compliance awareness. This brief has not passed every source check; confirm the original notification before acting. This does not constitute formal legal or CA counsel.
TaxQue News Desk
Share: