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Debt investments save tax too

Fixed Maturity plans, which invest in a portfolio of debt securities, offer a interesting tax benefit. By investing for a year and one day or 366 days, one can avail of ‘double indexation’.

business Updated: Dec 31, 2010 21:00 IST

Fixed Maturity plans, which invest in a portfolio of debt securities, offer a interesting tax benefit. By investing for a year and one day or 366 days, one can avail of ‘double indexation’.

This means that your cost of investment will be taken at a higher value due to inflation, since it would be assumed that you have stayed invested for two years instead of one year.