My Mom has kept a certain amount for risk-free/fixed return investment for a period of 1 year. Initially she planned to do it in the form of Fixed Deposit, but the investment advisor suggested investing in a Debt Fund that would yield similar returns, but whose returns after 1 year would be treated as long term capital gains, and thus a lower taxable amount, as per some exemption. Please advise if the infomation is correct, or if there is a better risk-free investment avenue with better tax planning but similar returns. Thanks! :)
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Fixed deposit or debt fund?
Replies (2)
The Returns generated by FD's and Debt Funds are almost similiar
Although, Debt Funds employ qualified management staff to manage your money, they also deduct charges for the same and the end result is almost similiar results
| Originally posted by : Neha sharma | ||
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The Returns generated by FD's and Debt Funds are almost similiar Although, Debt Funds employ qualified management staff to manage your money, they also deduct charges for the same and the end result is almost similiar results |
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Thanks Neha!
What I want to know is - is there a difference between the tax treatment of the returns from Fixed Deposit and that of a Debt Fund?
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