MIP vs FD – I am confused because of the recent budget changes ?

POSTED BY deepak_jagga ON July 14, 2014 6:10 pm ONE COMMENT

Hi,

I was considering to invest bulk money in MIP with dividend option and book profit after gaining some substantial amount. This option looker better to me. However i am not sure with the recent changes in the budget i am not sure whether to do it or not.

Please help me to  understand

 

One reply on this article “MIP vs FD – I am confused because of the recent budget changes ?”

  1. Sumit says:

    The advantage of tax treatment on debt funds are gone now.
    the long-term capital gains tax on debt mutual funds increased from 10% to 20 (after indexation), and that is also after holding 36 months.
    Debt fund never guarantees consistent return, they also can volatile and post negative return sometime. Though current interest rate scenario looks good, and chances are that rates only cane come down in next 1-3 years, which will be beneficial for debt fund returns. But if you don’t want hassle for your short term goal investments then go for FD, fixed return will bring peace of mind.

    Thanks
    Sumit

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