CAN MUTUAL FUND HELP IN SAVING TAXES?

Wondering how to save taxes?

Now it would be good time to begin with process of tax-deductible expenses so that you can lower your amount of taxes.

Saving taxes looks engaging however it needs systematic designing. Most of the people obtain investment opportunities which offer tax advantages solely. As a result, they usually found investing in product that don't seem to be essentially appropriate for them and cannot support their money goals.

One of the right investments option under section 80C tax saving mutual fund i.e. ELSS where one can save taxes upto 1.5 lakh every year.

Equity Linked Saving Schemes (ELSS) is the fund that invests a majority of their portfolio in equities and has diversified equity allocation among tax-saving investments. It also gives higher gains over the long-term.

Here are the reasons why one should invest in ELSS:

Tax saving mutual funds comes with a variety of advantages for the investors which are mentioned below:

• The investments made in these types of funds are eligible for tax benefits of up to Rs.1.5 lakhs.
• The long-term capital gains under these schemes aren’t taxed.
• Investments are often made in these schemes to plan for future expenses like buying a car or paying the down payment for a house etc.
• These plans enable investors to invest on a monthly basis via SIPs (Systematic Investment Plan) thereby negating the necessity to invest in one go.
• The portfolio assets are not invested within one place they are kept diverse so as to minimize the chance of losses.
• If you choose not to withdraw your investment, it will continue to grow and turn into a good amount of savings.
• While one may not be able to withdraw the principal amount but may withdraw the dividends earned, even during the lock-in period.
• While different investment options come with a lock-in period of 6 to 15 years, these mutual funds come with a lock-in period of only 3 years.
• Since these schemes are open-ended in nature, investments can be made throughout the year.
• The funds are professionally managed by experienced fund managers having in-depth market knowledge.

 Therefore, investors who don’t have any market knowledge can also invest in these funds with help of our team of GIIS Financial.

   You can have an overview of the comparison of ELSS with other investments:

The data makes it clear that ELSS category can indeed help one to meet their long-term goals. If one can take moderate risk, then can either buy an ELSS or multi cap scheme to achieve long-term financial goal. Planning to invest in ELSS can help one can claim a tax deduction on your investment with proper guidance.

You can use GIIS Financial tools or Our Android App  for Investment, tracking and Asset allocation planning. 

*Mutual Fund Investments are subject to market risk, read all scheme related documents carefully.

Share On