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What is the tax saving advantage of mutual funds?
A significant amount of your earning is usually eaten away by taxes. To ensure you keep more of what you make, tax planning becomes imperative. Which means, you need to invest your money in places that help you save taxes and even better – earn something out of them.
While there are many tax saving instruments available in the market, you have to be wise while selecting one. Just keeping your money in PPF or NSC to claim tax-break would yield moderate returns. If you want to make your money work harder and earn higher returns, then mutual funds can be a great place to invest.
This is where Equity Linked Savings Schemes (ELSS) come into the picture. With a 3-year lock-in period, they have the potential to earn higher returns than most tax-saving options and reduces your taxable income by Rs. 1,50,000.
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E. Sector Funds Invest Online
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F. Tax Saver Mutual Funds Invest Online
1. ICICI Prudential Tax Plan
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