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! :)
CAclubindia
