Investments that are exempted from tax are called Tax-free investments. There are two types of tax-free investments namely fixed tax and variable tax. In fixed investments, the investor is assured with the surety of return of the sum on maturity. In a variable investment, the value of the amount varies according to the luck and marketability of the original shares in a meticulous plan.

Generally, the tax-free investment term is used in markets where stock piling is usual and the rates of return are higher and tax-free. But what about those who doesn’t run a gas station or a grocery store, for them the there are multiple options; they first have to figure out that what type of taxes are applied in their country and on what savings or investments. This is the basic information one needs to know.

The second step includes categorizing the tax-free investment sectors. Generally, around 80% of countries doesn’t apply tax on sitting gold assets whereas taxes may apply on gold certificates or gold funds in some countries.

The second most common tax-free investment type is property. You must be thinking of property tax now, the math is simple, there are undeveloped areas in every country which offers lands in the suburbs or up-country. That is the second best investment opportunity for those who wants to invest and pay very minimal or no taxes at all.

The third option which gives good returns on investments are infact stock piling because buying in bulk and stocking up during sales saves you money. Ever wonder why those huge supermarkets have stocks ready all the time? Its because they invest in bulk buying and then stocks them up to boost up profits. They are the ones who make more money even after paying some taxes.

If you want greater interest rates in shorter span of time then a short term bond fund may meet your needs. A bond fund pools cash from multiple investors to buy individual bonds that meet

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the fund’s investment purpose. Each bond fund is efficiently handled, and is grouped based on the nature of bonds in which it invests. A usual short term bond fund invests in bonds that will mature in one year to three years.

A short term bond offers a greater potential interest than a money market fund but it carries more risk. When you own a bond or note from a credit-worthy issuer yourself, you will ultimately get the principal plus interest rate you contracted for if you hold the bond or note until it is due. Investing in a bond fund does not work the same way.

If more investors are withdrawing money from the fund rather than investing, the fund managers would then sell bonds in the fund even if it is not feasible to do so. The net asset value (NAV) of a share in a short-term bond fund can vary depending on the value of the bonds possessed by the fund. Shares in short term bond funds tend to fluctuate less than shares in long term bond funds but even in a short term bond fund there is no assurance that you will get back no less than the amount of money you invested into the fund.

Bond funds are subject to interest rate risk which is the risk that the market value of the bonds owned by a fund will differ as interest rates go bearish or bullish. Bond funds are also subject to credit risk which is the risk that the bond issuer may default on its obligation to pay the bondholders. They are subject to prepayment risk which is the risk that the issuers of the bonds owned by a fund will prepay them at a time when interest rates have declined.