investment with no tax, high liquidity, very low risk, good returns?



What is the best option for this scenario?
No tax on returns
High liquidity
Very low risk
Good/Guaranteed return

investment with no tax, high liquidity, very low risk, good returns?
Rate these answers

4 Replies to “investment with no tax, high liquidity, very low risk, good returns?”


  1. you could invest in Floating Rate Funds. they are comparitively the best investment plans one could get now. since the market is at all time low now.. it mite be a good time to buy shares.. but they might be the answer to real long term investment.. say 3-4 years.. but the risk is high here.
    floating rate funds are in the category of low risk, but high liquidity.. they are directly linked to he market .. and the returns are almost 8%..
    you money is taxable here.. but real low..
    this could be your answer to short term investment..

    also.. check out with banks. and their FD investment plans.. this is a very low risk bracket.. and with the interest rates shooting high.. it just mite be the right time..

    check out the gold rates .. last month they too hit all time low. good returns later.. no tax. low risk and high liquidity!! probably by a year and the half the market would recover.. and in my opinion gold prices would shoot up!! you could sell it for double the price!



  2. * When you are looking for a tax free return you will need wait for a period of 3 yrs minimum.. Except shares.. the returns become tax free after one year in that option…

    * You are expecting low risk and guaranteed return; so shares and Equity MF are eliminated from our choices..

    * ‘Tax free return’ eliminates bank investments…

    * By’high liquidity’ the PPF also goes out… since the term is 15 yrs…

    * The remaining options are

    ** Invest in a ULIP that provides no life cover (ie pure investment plan) like in LIC market plus there is an option to choose zero life cover and choose bond fund in that… you can expect a return of 6-8% p.a tax free. provides high liquidity after 3 yrs.

    ** Go for Jeevan Saral in LIC. Provides you a risk cover… provides high liquidity after 5 years… expect a return of 8-9% p.a

    in both the above options you can get tax break on the invested amount too….

    I do not find any other investments that can fulfill all your requirements…





Leave a Reply

Your email address will not be published. Required fields are marked *