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How debt funds save your tax outgo?

If you replace your Fixed Deposits that have a tenure of at least 3 years with Debt Funds, then your tax outgo on returns earned goes down from 30% to just 8.4%!

Debt Funds vs. Fixed Deposits: Compare the post-tax returns

Select rate of return

Select investment amount

Investment in Fixed Deposits
would have grown to

₹ ?
vs.

Investment in Debt Funds
would have grown to

₹
This calculation is based on holding period of 3 years. If you stay invested for longer duration, the tax benefit increases further.
How is this possible?

Convincing enough? Here is what to do next

Select a fund based on kind of deposits you prefer – bank FDs or corporate deposits.

DSP Banking and PSU Debt Fund

Invests in debt securities of companies like
  • Invests primarily in debt securities of AAA rated banking and public sector companies
  • Maintains an average maturity between 2 to 4 years
  • Ideal for investing when minimum timeframe is 1-3 years
  • No tenure commitment. Withdraw anytime without worrying about penalties
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DSP Short Term Fund

Invests in debt securities of companies like
  • Invests primarily in debt securities of AAA rated companies. 80% of portfolio in AAA rated assets
  • Maintains an average maturity between 1 to 3 years
  • Ideal for investing when minimum timeframe is 1-3 years
  • No tenure commitment. Withdraw anytime without worrying about penalties
Invest Now
Note: Companies mentioned above are indicative

DSP Banking & PSU Debt Fund

This open ended Income Scheme is suitable for investors who are seeking*

  1. Income over a short-term investment horizon
  2. Investment in money market and debt securities issued by banks and public sector entities/undertakings
*Investors should consult their mutual fund distributors if in doubt about whether the product is suitable for them.
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DSP Short Term Fund

This open ended Income Scheme is suitable for investors who are seeking*

  1. Income over a medium-term investment horizon
  2. Investment in money market and debt securities

*Investors should consult their mutual fund distributors if in doubt about whether the product is suitable for them.
riskometer
The calculation of 72.8% is based on the assumption that the investor is in the 30% tax bracket, invested in FY 2014-15 and exits/matures/redeems in FY 2017-18 and got interest rate/return of 7% from the investment. In case of debt funds the above calculation is considering investment made in growth option.

The above calculator is only for illustration purpose.

The comparison with Fixed Deposits has been given for the purpose of the general information only. An investment in mutual funds is not a mode of savings and should not be construed as a promise, guarantee on or a forecast of any minimum returns. Unlike fixed deposit with Banks, there is no capital protection guarantee or assurance of any return in mutual fund investment. Investment in mutual funds as compared to Fixed Deposits carry high risk and any investment decision needs to be taken only after consulting the Tax Consultant or Mutual Fund Distributor.

The sector(s)/stock(s)/issuer(s) mentioned in this document do not constitute any recommendation of the same and the Fund may or may not have any future position in these sector(s)/stock(s)/issuer(s). Past performance may or may not be sustained in the future. The above indicates the strategy/investment approach currently followed by the Schemes and the same may change in future depending on market conditions and other factors. The portfolio of the scheme is subject to changes within the provisions of the Scheme Information Document (SID) of the scheme. Please refer to the SID for investment pattern, strategy and risk factors.

Mutual Fund Investments are subject to market risks, read all scheme related documents carefully.