Where to invest my tax savings bond maturity amount for next 3 years

As your investment horizon is 3 years, you can invest in long term debt funds (income funds). Debt funds gives you a better tax adjusted return compared to fixed deposits.

You can invest in ICICI Prudential Long Term, UTI Dynamic Bond Fund and DHFL Pramerica Dynamic Bond Fund for 3 years. Please see the returns here https://www.advisorkhoj.com/mutual-funds...

After 3 years, you can withdraw a fixed amount from your investments through SWP. It is SWP (systematic withdrawal plan) and not STP (systematic transfer plan) as mentioned by you.

If you want to know how SWP works and why debt funds can give better post returns, do read this https://www.advisorkhoj.com/principalmf...

The other fund category which can fulfill your investment needs and can give even better returns is 'Balanced Funds'. However, for that we suggest that one should have an investment horizon of 5 years. SWP from balanced fund is far better as profits made on all withdrawals after 1 year from the date of investment is completely tax free! Please read more on this here https://www.advisorkhoj.com/articles/Mutual-Funds...

Hope you find our suggestions useful and can take an informed decision about your investments.

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