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Should I invest in capital gains bonds or pay LTCG and invest the post-tax amount in MFs?

Dhirendra Kumar says why it is better to invest in mutual funds

Answer transcript: Yes, I think investors should pay long term capital gains tax and be at absolute liberty to optimise or maximize returns. I generally avoid constrained investments. The tax saving bonds yield very low returns and will be yielding even lower returns in the future. You also get locked in. If this is long term money that I have realised by selling my house, I wouldn't want to get constrained by a capital gain bond paying me 5-6% or even lower.

This article was originally published on March 15, 2017.


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