How to invest without paying taxes

Canara Robeco Savings Plus Fund is an ultra short term debt fund and most suitable for investing the surplus amount lying in your bank account or for keeping an emergency corpus.

The profits received from the fund within 3 years will be treated as short term capital gains and taxed according to your income tax slab. Profits made after 3 years will be treated as long term capital gains and tax payable will be @20% after indexation. However, please note that this fund will be able to give you better returns, approx 7 - 8%, than your savings bank account returns which is around only 4% now.

You should change/ switch to other funds only if your investment needs are different from what we mentioned above. For example - if you want to create long term wealth and ready to take some risk, you can switch over to equity funds. Canara Robeco Emerging Equities Fund (mid cap fund) and Canara Robeco Large Cap+ Fund (large cap fund) could be suitable for your provide you are ready to take risk and remain invested for at lest 5 years.

Please assess your risk profile first and then the investment horizon before deciding to switch from Canara Robeco Savings Plus Fund to any of the equity funds from Canara Robeco Mutual Fund stable.

Hope you find the above suggestions helpful and thanks for writing to Advisorkhoj.