Personal Finance The impact of LTCG tax on your portfolio of investments explained Updated : July 18, 2018 02:30 PM IST The long-term annualised returns the impact of the LTCG tax can be high or low depending on the order of annual returns. An average investor should reduce his annual portfolio return expectations by almost 0.5- 0.75% over a 20-year horizon due to the LTCG tax. Subscribe to Moneycontrol PRO at just Rs.33/- per month for the first year. Use code SUPERPRO. Limited period offer. Available on Web and Android.