Where to invest for 1 year

For investment horizon of 12 - 24 months, you can invest in short term bond funds. Birla Sun Life Short Term Fund, ICICI Prudential Banking & PSU Debt Fund, HDFC Medium Term Opportunities Fund and UTI Short term Fund are amongst good funds in this category.

Profits from investments in debt funds, if the holding period is less than 3 years, will be treated as short term capital gains and taxed according to your income tax slab. If the holding period is more than 3 years, it will be taxed as long term capital gains @20% after indexation.

Hope the above helps! Thanks for writing to Advisorkhoj !