Save Money On Tax With A Tax Saving Plan-66814

Taxes Tax planning is a very important aspect in the lives of every Indian. Very often, investors may find themselves going to any extent to merely save on taxes. While there may be some individuals who invest more than the required amount to save on taxes, others may also park their money in wrong financial products. There are a number of tax-saving mutual funds that are available to investors. These play a very important role in financial planning. There are also a number of tax discounts which are offered by the Government of India. These tax-saving mutual funds are also known as ELSS – Equity Linked Savings Schemes. Besides that, there are also a number of other tax-saving options such as PPF, insurance plans, NSCs (National Savings Certificate), etc. where an investor can save on tax. What is an ELSS Equity Linked Savings Scheme? An ELSS is a type of mutual fund wherein you can save on tax, i.e. they are equity liquid saving schemes and locked in for a period of three years. You can start your investments with as low as INR 500 per month or even 1 lakh per year. There are a number of diversified equity mutual funds under the ELSS which offer relief from in.e tax and also provide the dual advantage of tax benefits as well as capital growth. Deductible under section 80 C, ELSS mutual funds save you INR 100, 000 deduction form in.e (those taxes which are calculated after this deduction) These type of funds are subject to both growth and dividend options. These tax saver funds basically refer to those mutual fund schemes which invest in equity and/or equity related securities. Usually these funds are locked in for a period of three years and cannot be redeemed during this tenure. It is important in todays fast-paced time and age to effectively plan your financial year and not engage in any hasty, last minute investment decisions. Some of the best tax saver funds India include DSP BlackRock Tax Saver Fund, HDFC Tax Saver Fund, Religare Tax Plan, SBI Magnum Tax Gain, Franklin India Tax-Shield, ICICI Prudential Tax Plan and Axis Long Term Equity. There is a plethora of tax saving mutual funds that are available in the country. Investors need to bear in mind the current performance of the specific fund, which is often observed after a period of 3-5 years (of its investment period). This means that the investor needs to evaluate the fund on NAV returns. It is a very critical parameter, on which a fund must redeem itself. You should always look out for a solid performance along with a benchmark index (BSE 200, Index Nifty, etc.). You also need to keep in mind the investment style and approach of the fund manager. Strong systems and processes indicate a good performance of the mutual fund (tax saver fund). Another key important factor that investors should keep in mind is the amount of returns that the particular fund offers in .parison to other tax saving funds. Usually aggressive investment approaches yield decent returns. About the Author: 相关的主题文章: