1. Advisorkhoj
  2. Mutual Funds Research
  3. Liquid Funds vs Savings Bank

Liquid Funds vs Savings Bank

Savings Bank
Liquid Fund
Pre-Tax Return Investment Amount Redeemed / Maturity Amount Total Interest / Profit Amount Annual Interest / Return (%)
Savings Bank Deposit 100000 0 -100,000 0.0
100000 0 -100,000 0.0
Post Tax Return Pre-tax Interest / Profit Amount Capital Gains Tax Indexed Amount Income / Capital Gains Tax Post Tax Interest / Profit Amount
Savings Bank Deposit -100,000 Not Applicable Not Applicable 0 -100,000
-100,000 Short Term Not Applicable 0 -100,000


1. Short Term in case of debt funds is defined as less than or equal to 3 years.

2. Long Term in case of debt funds is defined as more than 3 years.

3. Short term gain formula:

Short term capital gain = Amount realised - Amount invested

Short term capital gain tax = Short term capital gain * Tax rate of the investor

4. Long term gain formula:

Indexed cost of acquisition = Amount invested * (Index in Year of redemption / Index in year of investment)

Long term capital gain = Amount realised - Indexed Cost of Acquisition

Long term capital gain tax = Long term capital gain (post indexation) @ 20%

Advisorkhoj develops innovative mutual fund research tools that help you in your mutual fund investments. We would be happy to get your feedback, suggestions. Please leave your comments below.

comments powered by Disqus

© 2016 Advisorkhoj - A Gamechanger Business Services (I) Pvt. Ltd. Brand - All Rights Reserved