5 replies on this article “Lumsum investment – 5lacs for 1 to 2 years (not preferring bank or corporate FDs)”

1. Lavanya Thomas says:

   January 3, 2013 at 12:18 pm

   Thanks Ashal Jauhari.

   Even though tax will be high in FD (which still we can hide interest from tx if we want to) but it has a guaranteed return.

   I would be happy to invest in MF but lumsum will never work (based on my experience in the past).

   Unfortunate that we don’t have any other options in india to invest lum sum money and get more than 10% return in a year or two.

   I am still looking forward to hear some more ideas in this topic.

   Reply
2. Ashal Jauhari says:

   January 3, 2013 at 5:08 am

   Dear Lavanya, in case you want to risk a bit for Eq. MIPs like HDFC MIP LTP or Reliance MIP may be an option for you. please try to understand that MF investments are not at all gtd.

   How much more can you get above FDs? Well there is a direct benefit of taxation, if you are in 30% tax slab, the FD interest ‘ll be taxed @ 30.9% whereas your gains from these debt funds (for taxation purpose, MIPs are also classified as debt funds) ‘ll be charged @ flat rate of 10.3% with out indexation after 1Y or 20.6% with indexation.

   In case your next query is for indexation, please google it or search in this forum itself & you ‘ll get your answer.

   Thanks

   Ashal

   Reply
3. Free Financial Calculators says:

   January 2, 2013 at 5:55 pm

   oh dear! Sorry I mean NOT guaranteed! terribly sorry

   Every debt product has tax ;liability

   The article talks about this, But tax will lower than FDs

   Reply
4. Lavanya Thomas says:

   January 2, 2013 at 5:06 pm

   Thanks FFC for your quick response.

   can you please confirm your statement “Note returns are guaranteed in debt funds”? if its true then i will go ahead and invest in debt funds. I hope there is no tax liability in debt or income funds.

   btw.. yes, i am also parking 20% of 5lacs in bank FD.

   Any other options friend?

   Reply
5. Free Financial Calculators says:

   January 2, 2013 at 4:50 pm

   Yes you can consider debt funds like fixed maturity plans and income funds

   This article answers your question well

   http://businesstoday.intoday.in/story/invest-debt-funds-stock-market-volatility/1/20330.html

   If you want this in 1-2 years stay away from equity funds and spread yourself across a few debt funds.

   Note returns are guaranteed in debt funds. But generally are less riskier then equity. Spread your risk adequately. Choosing a bank FDs for a small % of the money is not a bad idea at all

   Reply

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