schemesc hybrid schemesd solutionoriented schemese other schemeswith the new classification norms and distinct categorisation investors will have a better understanding of the scheme and make an informed decision takeaway for 2018 you will know what exactly you are investing in and it will make selecting a fund easier if a scheme says it is a largecap fund it will have to invest in only largecap stocks and not a selection of large mid and smallcap stocks in other words a multicap scheme asset management companies will have to align their schemes to comply with the directive and make sure that they are true to their mandates we could see mergers of schemes if the fund house has similar schemes 4 cut in small savings schemes interest ratethe interest rate on small savings schemes like national savings certificate sukanya samriddhi yojana kisan vikas patra kvp and public provident fund ppf went down over the last one year albeit marginally the interest rate on the post office savings account was retained at 4 per cent despite the decline in rate of interest these small savings schemes havent waned in popularity mainly because the interest offered on them is still higher than what is being offered by bank fixed deposits not only do these schemes offer competitive rates of interest in comparison to other fixed income instruments such as bank fixed deposits some even come with tax benefits under section 80c of the income tax act et online takeaway for 2018 despite reduction in interest rates small saving schemes still offer interest rates higher than most comparably safe bank fixed deposits so keep these on your radar when looking for safe fixed income investment options5 gst on financial services the implementation of the new indirect tax regime has undoubtedly impacted your pocket especially when it comes to financial services from the previous 15 percent rate banking and insurance services will attract 18 percent gst the 3 percent hike in the tax rate has made these financial services dearer although service tax on mutual fund returns has increased 3 percent the impact on returns will be marginal this is because gst is levied on a schemes total expense ratio ter expense ratio is the measure of the cost incurred by an investment company to operate its mutual fund now real estate is still not a part of gst but construction activities including residential structures will attract gst of 12 percent this makes underconstruction projects costlier than readytomovein properties as per the central board of excise and customs sale of building is an activity or consideration which is neither a supply of goods nor a supply of services this makes the readytomove properties lucrative compared with underconstruction propertiestakeaway for 2018 formal sector services are getting expensive due to higher gst and it looks like this scenario is here to stay so make sure you try to get the maximum discount on the service and avoid penal charges for late payment etc as this will reduce