a Fixed Maturity Plan (FMP) while yielding almost the same return as a bank fixed deposit, is superior to the latter on a post-tax basis.
a longer termed FMP (of over one year) has an even better edge than its shorter-termed counterpart.The reason is that for an FMP of over one year, the return is taxed as long-term capital gain and not normal income. Readers of these columns would know that the capital gains tax structure is much more beneficial than normal income tax.
Monday, May 21, 2007
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