Last year, I paid about Rs 40,000 for tax towards my FD income. Please advice on debt funds that will reduce the tax burden and perform like an FD.
-Naresh
Short-term bond funds are best suited for somebody like you who seeks predictable returns and doesn’t want to take chances with a view on the interest rates. 2011 was a great year for such funds, and they’ve continued to do well this year as well. You can choose from UTI Short Term Income or Templeton India Short-term.
This article was originally published on July 03, 2012.