I have recently received Rs 20 lakh as part of my retirement benefits and I want to invest the same for my daughter’s marriage, which means I would need the money in about 18-34 months. I expect a post-tax return of about 9-11 per cent, and I also expect to be in a 20 per cent tax slab. What would you advise me?
-John D’Souza
Given a short timeframe and a non-negotiable goal, you should be completely risk-averse with this investment. For a tax-efficient return, you should choose a dynamic bond fund or a short-term bond fund. And a part of your money should be into high-yielding bank deposits, even if it amounts to paying some taxes.
This article was originally published on April 17, 2012.
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