Suggestions on investing money for 1 year in order to save tax

POSTED BY Ishan Dindorkar ON April 30, 2012 3:16 pm COMMENTS (6)

Hi Experts,

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,
Ishan Dindorkar

6 replies on this article “Suggestions on investing money for 1 year in order to save tax”

  1. Abhishek Srivastava says:

    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
    Try http://on.fb.me/MX9J1Z

  2. 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.

    Thanks

    Ashal

  3. BanyanFA says:

    Hi Ishan,
    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.

    Regards
    BanyanFA

  4. TheZionView says:

    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.

  5. bharat shah says:

    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!

  6. Jeetu says:

    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…

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