Want to park 4 l for 13 mo.Then SWP. Highest tax bracket. Arbitrage or short-term debt
13 Months is too short period. Instead of going for Arbitrage (I smelt you thought to avoid tax) or short term debt funds, I suggest either Liquid Funds or FDs. Else, you can use part in FDs and another part in Arbitrage. But don’t be in wrong belief that Arbitrage funds or short term debt funds beat the typical FD rates and you can take an advantage of tax saving.
Sir, Arbitrage is tax free after 1 yr but FD is not.So?
But how can you guarantee that they beat over FD and provide you better tax-free return than Bank FDs post tax returns? Have you done some homework based on past performance of such arbitrage funds?