Please what will be ascending order of post tax return for a person in 30% tax slab, 1) PPF, 2) Arbitrage Fund, 3) Debt Fund, 4) Liquid Fund, for more than 3 years duration of investment?
Please note that excepting PPF, none of the MF scheme categories mentioned by you offer assured return, Therefore, telling the post tax return is difficult. However, we are giving below the taxation of each (as per current taxation rules) so that you know what would be the post tax impact on the actual return when you get them -
PPF - Withdrawal is tax free
Arbitrage funds - Equity taxation is applicable - Long term capital gains from arbitrage funds (investment held for more than 1 year) are tax free up to Rs 1 lakh of capital gains in a financial year. Long term capital gains in excess of Rs 1 lakh are taxed at 10%. Short term gains (investment held for less than 1 year) are taxed at 15%
Liquid funds and debt funds - Non-equity taxation is applicable - Long term capital gains (investment held for more than 3 years) are taxed at 10% after allowing indexation. Short term gains (investment held for less than 3 years) are taxed at the tax rate applicable to the investor. In your case it will be 30%!
Read more about mutual fund taxation here https://www.advisorkhoj.com/smf...
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