August 5, 2011 7:44 am
There is a caveat here. In the proposed DTC, the holding period of a debt instrument should include the complete FY and not just 366 days. It means if you want your FMP to benefit from long term capital gains and you have purchased it in Nov 2011, then the FMP should end after 31st March 2013 (a period of 12+4 months and not 12months+1 day). So check these details and the exact DTC wordings.
Assuming you fall in the 30% tax bracket and the FMP is for about 1 year as well:
Go for a NCD if it is credit worthy.
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