Monday, April 7, 2014

FMPs is Short Term Investment

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Fixed maturity plans - FMPs

Fixed maturity plans are the best place to park your money for a period of 3-5 years

The best place to park your money for 3-5 years with reasonable safety will be FMP. Today it is possible to invest in an FMP which will yield a little more than 9 per cent, it could well be up to 10 per cent. The returns will be more tax efficient compared to bank FDs. The interest income on bank FD will be taxable and added to your income, if you're in the highest bracket it could be up to 30 per cent. Compared to that, after indexation, the capital gains tax on FMP could be substantially less, 4-5 per cent.

For further information contact Prajna Capital on 94 8300 8300 by leaving a missed call

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