03 April 2015
Investment is always based on 'high risk high return, low risk low return'.
Equity - highly risky investment area. Therefore, you can book the high return as well as high loss also. In bull market, you can expect 15%-20% return on your investment.
FD - Very low risky investment. Therefore, normal return is 8%-9%
Debenture - It is also low risky investment. However, debenture normally secured against immovable property of the company. The rate of interest always higher than the FD interest rate.
Tax Implication: Equity: 1. Dividend is exempted 2. Long term capital gain i.e. if the holding period is more then 1 year, is exempted. 3. Short term capital gain i.e. if the holding period is less than 1 year, then it is taxable at the rate of 15%.
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