Hi Sreekanth,
I need to park 4 lakhs for 1-1.5 years in low risk options. Please suggest how can I do the same.
This is not emergency cash, but just surplus cash which I just wish to park for a later planned use- somewhere in Feb 2017. I need capital to be secure. Please advise on avenues which could yield better than SBA interest rates.
From your blogs, I think a combination of Liquid + Arbitrage funds would work. Since interest rate decline is anticipated in upcoming months, would Gilt funds be a good option? I need more guidance around risks since capital protection is important to me.
Thanks much once again.
-Anu
1 Answers
Hi,
You may consider Arbitrage fund, as the gains are tax-exempt after holding the units for 12+months.
You may also consider Short-term debt funds, but do understand the risks associated with debt funds.
The gains (if any) on debt fund are taxable.
Read :
http://www.relakhs.com/best-arbitrage-funds-returns/
http://www.relakhs.com/best-debt-mutual-funds-india-top-debt-funds/
http://www.relakhs.com/mutual-funds-taxation-rules-capital-gains-tax-rates-on-mfs-fy-201516/
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