Money Saver India
“I use ultra short-term funds to my advantage”

“I use ultra short-term funds to my advantage”

Deepak Shenoy, founder of Capital Mind, discusses a strategy he uses to cut his tax liability, the Micromax Canvas 2, and a magazine subscription he didn’t mind paying a premium for.

Deepak Shenoy is chief editor of Capital Mind, is deeply involved in spreading financial education and awareness on markets and financial products via various projects and initiatives.

What are your money-saving tricks?
I don’t necessarily have many, but one that I use is that as I earn money I put it into an ultra short-term fund. Since I pay most bills by credit card, I know when to pay my bills – so I withdraw from the ultra-short term funds then. This has a huge tax impact for me, since after a year any withdrawals are taxed as long-term capital gains with indexation (which means I pay very little tax on it). This may sound like an obscure thing but you could quite easily make good money on it.

What was the last great deal you got?
I bought a Micromax Canvas 2 HD which is a quad-core 5-inch HD phone for Rs14,000. This is much cheaper than an equivalent Samsung or Apple product, but just as good.

Is there a product/service you don’t mind paying a premium for?
I just bought Moneylife’s annual subscription and that I didn’t mind paying a premium for.

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