POSTED BY November 6, 2013 2:19 pm COMMENTS (9)
ONHello,
Due to market fall and uncertainty, we have redeemed all our Mutual Funds worth Rs. 25 Lacs. We are thinking of investing into a Flat. But would like to know other options (except real estate) where in there would be no risk and no uncertainity. We dont wish to do Fixed Deposit since it would attract income tax.
Hence kindly suggest.
Regards,
Varsha
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Dear Varsha, being confused is not wrong. Please discuss to get yourself out of your own confusion. The money was already in Eq. You pulled out and now want to reinvest in Eq. (ELSS is also Eq.) through SIP. If keeping the money in Eq. was the final aim, why did you pull out at all to disrupt the compounding? That’s my question.
Thanks
Ashal
Dear Varsha, what benefit you ‘ll achieve from SIP when the money was already there in Eq. I’m unable to understand your thinking process.
Thanks
Ashal
Hi,
Well, I am bit confused… 🙁 Should I invest in ELSS..so that I dont have to pay Tax..
Regards,
Varsha
Dear Varsha, why did you redeem at all?
thanks
Ashal
Hello,
Thanks all of your suggestions.
But now thinking of investing some of the funds in purchasing land and some in SIP for long term. Hope they will reap with high returns.. 🙂
Regards,
Varsha
1) PPF / Voluntary EPF
2) Tax free bonds
3) Equity Arbitrage funds (low risk and no tax if held for 12 months or more)
you can see returns from arbitrage funds here
http://www.moneycontrol.com/mutual-funds/performance-tracker/returns/arbitrage-and-arbitrage-plus.html
Mr.Pattu’s blog post on arbitrage funds
http://freefincal.com/can-you-think-of-a-risk-free-and-tax-free-financial-instrument/
Hi,
Difficult to answer without knowing your goal, time frame etc.
1) Firstly I didn’t understand the logic “Due to market fall and uncertainty, we have redeemed all our Mutual Funds”. Market investment is not like Fixed deposit – where you will invest everything in a lump-sum and wait for a certain return after a certain period. Volatility is only certain thing in share market, so short term investment is risky and not advisable, but if You invest in Systematic Investment plan keeping long term horizon (more than 10 years) – equity is bound to generate better return than any fixed income product (You will be amazed if you calculate the last 10 years return of top performer funds), and TAX FREE !! – which you wanted.
2) Other than that, if you want tax free decent return with certainty then PPF is best option for long term. Know all aboy PPF, interest, return and tax treatment below:
http://www.behealthyinvestor.com/all-about-ppf/
Can’t recollect anything else for good benefit without much tax implication now.
Thanks
Sumit
Awaiting Reply..