I would start by investing 30 per cent in debt -- 20 per cent (Rs 60,000) in bank fixed deposits, 10 per cent (Rs 30,000) in FMPs of mutual funds and another 10 per cent (Rs 30,000) in gold ETFs.
By getting into fixed deposits of over one year, I would create a stable part of my debt portfolio that will give me 10-10.5 per cent returns. But since the interest earnings would come under the head of 'income under other sources', my tax payout will increase.
On the other hand, 10 per cent in FMPs (for 13-14 months) of mutual funds would give me double indexation benefits.
That is, if I had invested in an FMP on 20 March, 2008 and it's maturing in 10 May 2009, my returns will be taxed at 10 per cent (without indexation) or 20 per cent (after inflation indexation benefit of 2007-08 and 2009-10).
Yes, the risk is higher in FMPs, but with returns hovering around 11-11.5 per cent, it's worth it.
An investment of Rs 30,000, or 10 per cent, in gold ETFs will ensure that I am able to take advantage of the gold rush.
Image: The bronze bull outside the Mumbai Stock exchange. | Photograph: Pal Pillai/AFP/Getty Images
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