Are you investing right? Expert tips to fix your mutual fund portfolio

Mutual fund portfolio: The Union Finance Minister presented the Budget 2026 in the Parliament on Sunday, February 1. Post budget, it’s common to face considerable confusion and for people to raise questions or queries. Thus, to clear the air and answer some of the basic queries related to mutual funds, we bring to you tips straight from the mutual fund expert, Pankaj Mathpal. He spoke exclusively to ET Now and simplified some of the budget-specific viewers' questions. You can go through it, you might come across some relatable queries that you were wondering who to ask about.Query 1: Overseas investments and assetsLet’s start with a query from an investor named Rohan. He says that he has assets and investments abroad, which he has not declared in India. He earlier worked with an IT firm overseas for almost a decade and has not redeemed his investments in stocks and real estate. In light of the recent budget announcements on declaring overseas assets and investments, he wants to know how this will impact him.Overseas investments and assets: Expert adviceHere is the expert advice:The first point to note is that his overseas assets should have been declared earlier, as the income tax return (ITR) form has a specific section for reporting foreign assets. Going forward, the investor must ensure that all such assets are properly disclosed.The second aspect relates to taxation in case he plans to sell these assets. Whether the income will be taxable in India depends on the investor's residential status. Since the investor has returned to India after spending nearly a decade abroad, they must first determine whether they qualify as a resident or non-resident for the financial year 2025-26.If the investor stayed in India for 182 days or more during the financial year, they will be treated as a resident. The next step is to assess whether he falls under the category of Resident and Ordinarily Resident (ROR) or Resident but Not OrdinarilyResident (RNOR).This depends on two conditions: whether the investor spent at least nine out of the previous ten years outside India, and whether their total stay in India during the last seven years was 729 days or less.If both conditions are met, the investor will be classified as a Resident but Not Ordinarily Resident. In that case, any income earned from the sale of overseas assets will not be taxable in India. However, if these conditions are not fulfilled and he is considered a Resident and Ordinarily Resident, then the income from selling those assets will be taxable in India. Hence, determining the correct tax status is crucial.Query 2: Sovereign Gold BondsLet’s now take a query from another investor regarding Sovereign Gold Bonds (SGBs). He says he purchased SGBs from the secondary market, and with the budget clarifying that tax benefits will be available only to primary investors, he wants to understand what changes have been made and how this will impact his returns.Sovereign Gold Bonds: Expert advice In Budget 2026, the government has clarified that since fresh issuances of Sovereign Gold Bonds are no longer being offered, investors can now acquire these bonds only through the secondary market.Earlier, there was a general understanding that, irrespective of whether the bonds were purchased directly from the issuer or from the secondary market, holding them till maturity would make the redemption proceeds tax-free. For example, an investor buying an older SGB series from the secondary market and holding it until maturity was earlier assumed to be eligible for tax-free redemption.However, the latest budget clarification states that this tax exemption will apply only to primary investors, those who purchased the bonds directly from the issuer at the time of original issuance. If Sovereign Gold Bonds are bought from the secondary market, the redemption or maturity proceeds will now be taxable in the investor’s hands.https://youtu.be/qQSgE5kT49A?si=Pjh-L6W85Foz5lLl(Disclaimer: The above article is meant for informational purposes only, and should not be considered as any investment advice. ET NOW DIGITAL suggests its readers/audience to consult their financial advisors before making any money related decisions.)