Liquid fund query

POSTED BY rajan.panchal24 ON April 14, 2013 9:01 am COMMENTS (6)

I want to invest some amount over a period of one year and then withdraw it..I was thinking about the liquid funds but i am not sure whether it is tax effective or not..

Please advise.

P.S. I fall in 10% tax slab.

6 replies on this article “Liquid fund query”

  1. Dear Rajan, the liquid funds redemption ‘ll involve LTCG as well as STCG for more than & less than 1Y holdings. So it ‘ll be a bit complicated taxation calculation to you. Now compare how much more over bank RDs, you can earn?

    In case of RDs, you may earn 7-8% for 13 months period. That’s gtd. but in case of liquid fund, it’s not at all gtd.

    Thanks

    Ashal

  2. rajan.panchal24@gmail.com says:

    Hi ashal,
    Why it’s is not a gud idea to invest in liquid fund For such a rebate tenure
    i just want to understand

  3. Dear Rajan, a plain RD is better for you as you fall in 10% tax slab.

    Thanks

    Ashal

  4. rajan.panchal24@gmail.com says:

    Exactly 13 months

  5. Dear Rajan, are you going to invest on mly basis & then redeeming in one go? ‘ll the redemption happen exactly after 1Y from now onwards or you ‘ll redeem after 15-18 months?

    Please clarify.

    Thanks

    Ashal

  6. If you are in the 30% slab liquid funds are more tax efficient than FDs. For 10% slab it is not that significant. If investing in liquid fund hold them for a little over 1 year to minimize tax
    out-go

    Read more

    http://www.fundsindia.com/blog/mutual-funds/liquid-funds-invest/751

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