Widely read:
Mr Malhotra is retiring in a couple of years. He has Rs.50 lakh and wants to invest it in a fixed-income avenue in a tax-efficient manner. He is likely to receive sufficient pension after retirement and may not be dependent on this money for his daily expenses. But he does not want to compromise on the liquidity and would like to have the freedom of making partial withdrawals, whenever needed.
Initially, he decided to invest this money in a bank fixed deposit (FD). But then he read somewhere that debt funds are more tax-efficient. Now, he wants to understand how that's so. He also wants to know whether he should invest the entire amount in debt funds.
This article was originally published on August 18, 2021, and last updated on December 07, 2022.
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