Investment for tax saving

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chintamani (Querist)
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04 February 2012 Dear Sir/Madam,

My sister advised by her office to invest around 60K to save tax of around 6k now my quary is whether to go for such an investment by withdrawing her FDs or she should pay the tax?

If to be invested what are the best ways so that money would be available in around 2-3 years

Thanks

CA Suraj Lakhotia

CA Suraj Lakhotia (Expert)
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04 February 2012 You can go for Tax Saver Mutual funds where the money is available in 3 years. But the caution here is the returns would depend on market conditions.

Other mode of investments have a considerably long time viz 5-7 years.

FDs/NSC etc have a maturity period of 5-7 years.

If she is ready to stay invested for 5 years, then she can go for a FD. If she can take some risk, part amount can be invested in Mutual Funds.