I have about Rs 10 lakh that I can invest for a year. Please suggest debt funds that I can invest in. I’m looking for better returns than what fixed deposits would get.
-Amitabh
Apart from liquidity and returns, tax efficiency is another factor which should be taken into account for such investments. Today, while you're getting decent, predictable returns from bank fixed deposits, they, along with FMPs, can be ruled out as options because of the lack of interim liquidity. Hence, the only other option that you have is a dynamic bond fund. While investments in dynamic bond funds can be a compromise in terms of returns, they are extremely liquid and more tax efficient. Some of the dynamic bond funds that you can invest in are UTI Bond fund, Birla Sun Life Dynamic Bond fund, or Templeton India Incxome fund.
This article was originally published on May 08, 2012.
Ask Value Research 
New episodes every Friday 
New Process Alert 
Seems like you've uploaded a wrong QR code. Please upload the QR code downloaded from MF Central platform.
