POSTED BY April 30, 2012 3:16 pm COMMENTS (6)ON
Please suggest how should I invest my money for 1 year so that I can save tax as well as can liquidate my savings after a period of 1 year.
Also kindly suggest whether it is possible to invest in tax saving MF such that after 1 year I can redeem my savings invested in MF. If yes, please give information on tax savings MF that can be safe for investing for 1 year.
Thanks & Regards,
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6 replies on this article “Suggestions on investing money for 1 year in order to save tax”
Ishan its better to take some expert advice, for short term investment options can range under:
1. Fixed income mutual funds,
2. Bond funds/longer-duration gilt funds, and
3. NRE deposits
Dear Ishan, such 1Y investment is possible if you are already running an old PPF account of at least 7Y or more. Yes I do agree with all others that no individual instrument is available that ‘ll provide tax benefit with 1Y lock-in period. This PPF thing is a practical solution only if applicable to you.
I am sorry to write a dissapointing answer, but there would be no tax saving instrument which you can liquidate within 1 year. The real motive behind such investment options was to build long term capital and inculate the habit of saving.
ELSS Mutual funds have lockin of 3 years. The new RGES scheme is said to have a lockin of 5 years.
No there is no avenue as of now which will save tax and also the give back the money back to you in 1 year.
The only place that can happen would be your savings account and the interest is within 10K for the year.
you may wait for details of Rajiv Gandhi Equity Scheme announced in this budget, if your income is below 10 lacs , but may disappoint also!
As far as I know, ELSS (Tax saving MFs) will have lock-in period of 3 years, which means you can redeem your funds after 3 years.
Hope it helps…