Thursday, February 19, 2015

Tax Saving Alternative

Tax Saving funds have outperformed their other tax-saving peers by a wide margin over the long-term

 

Tax-saving schemes or equity-linked savings schemes (ELSS) are probably the best tax-saving option available under Section 80C, which allows tax deduction of up to R1.5 lakh for investments in certain instruments. These schemes have only a three-year lock-in period, which is the lowest mandatory lock-in period among investments permitted under the section. Other popular investment options like bank FD, NSC, PPF, among others, come with a lock-in period of five to 15 years.

 

ELSS may be risky as they invest in equity, but they can also be equally rewarding. For example, systematic investment plan (SIP) investments have offered an average return of 20.6 per cent in the last five years, 15.2 per cent in the last ten years and 20.2 per cent in the last 15 years. Other comparable investment options like NSC or Public Provident Fund or a five-year fixed deposit with a bank offer only single-digit returns.

 

ELSS further allows investors to tweak investments based on their risk appetite. So, there are schemes that invest in large-caps and there are schemes that buy into small and mid-caps.


 
Best Tax Saver Mutual Funds or ELSS Mutual Funds for 2015

1.ICICI Prudential Tax Plan

2.Reliance Tax Saver (ELSS) Fund

3.HDFC TaxSaver

4.DSP BlackRock Tax Saver Fund

5.Religare Tax Plan

6.Franklin India TaxShield

7.Canara Robeco Equity Tax Saver

8.IDFC Tax Advantage (ELSS) Fund

9.Axis Tax Saver Fund

10.BNP Paribas Long Term Equity Fund

You can invest Rs 1,50,000 and Save Tax under Section 80C by investing in Mutual Funds

Invest in Tax Saver Mutual Funds Online -

Invest Online

Download Application Forms

For further information contact Prajna Capital on 94 8300 8300 by leaving a missed call

---------------------------------------------

Leave your comment with mail ID and we will answer them

OR

You can write to us at

PrajnaCapital [at] Gmail [dot] Com

OR

Leave a missed Call on 94 8300 8300

---------------------------------------------

Invest Mutual Funds Online

Invest Any Mutual Fund Online

Download Mutual Fund Application Forms from all AMCs

0 comments: