Do it Before the March Approaches! Invest in Tax Saving Mutual Funds - MySIPOnline
Oct 23, 2017 4 min read

Do it Before the March Approaches! Invest in Tax Saving Mutual Funds

Are you still thinking? The majority of the smart investors had already started on it!
What will you do when you know that you will be in a need of a significant amount of money in the near future? Of course you’ll start managing it as early as possible in order to reduce the pressure during that time. Or you will wait for the hard time to approach you? The first option is what a normal choice of all the individuals.

Similarly, you must also be cautious that the year end is approaching and the tax liability is going to encounter soon. So what should be your call? We suggest you to get prepared as early as possible. Start your tax planning early and make it effortless in the due time unlike running at the last moment. You can also make adequate savings on your taxable income if you start planning it early.

Mutual funds help you to get a deduction of up to Rs. 1.5 lakh on your total taxable income under section 80C of the Income Tax Act of India, 1961. It means a big opportunity for all the tax payers which should not be wasted. We will discuss about the scheme which provide such benefits, and also the best performing funds which have been recommended by the experts for their excellent performance.

Equity Linked Savings Scheme (ELSS): The category of tax-saving scheme which is known to provide the tax benefits to the investors u/s 80C. ELSS funds are like the seasonal investment for most of the investors. But it does not allow the adequate benefits when treated as a seasonal option. In simpler terms, most of the investors park their money in this category of funds only during the year ending to avail the tax benefits. But, they are unaware of the fact that they could gain more advantages on their investment if they had invested earlier.

ELSS mutual fund also helps in availing the long-term profits similar to the equity investments because they invest the capital in the stocks of various companies. Therefore, the individuals who opt for ELSS schemes get benefited with the double values, namely the tax-savings, and capital appreciation.

The surprises doesn’t end here! You must also know that it stands superior to all other tax savings instruments. The investments like PPF, NSC, Bank Fixed Deposits (FD), etc., remains behind in the queue when you call for the best tax saving investment option. This is because of the following superiority (refer the table below):

tax saving investment option

** No information shown in the table should be considered for any decision making process for investments in any of the instruments or any such

From the above table, it can be clearly understood that why ELSS is the most opted tax-savings scheme, and how it is superior than the other instruments providing such benefits. Therefore, you must not waste a few second more in thinking for the best tax saving option. Take the best call now.

Here are some of the best ELSS funds that have proven their excellence:

Tata India Tax Saving Fund: An excellent performer for the last two years it is held first in the category of ELSS by the CRISIL rating agency in the quarter ended June 2017. The total assets under management of this scheme is amounting to Rs. 839 crore as on September 30, 2017. You too can invest in this scheme to avail the tax benefits on your income.

L&T Tax Advantage Fund: One more excellent performer since inception in the year 2006, this scheme of the L&T Mutual Fund helps the investors to fetch the high capital growth. Having the primary objective of providing a tax deduction under section 80C, it allows them to create wealth systematically as well. The expert fund manager, Soumendra Nath Lahiri, deserves a great applause as he has managed the scheme excellently to showcase the best run since 2012.

Kotak Tax Saver Fund: Being a tax-saving scheme it also offers the benefits of tax deduction and capital appreciation. But, the thing which is very interesting about this scheme is its performance trend. It has performed amazingly well in the past by making big waves when you see its growth graph. During 2007-08 it attained highs and had capability of moving up further. But, the economic downturn of that time pulled it lower and crashed its value. Still, it never accepted the trend and in the very subsequent year, i.e., 2009-10, it had amazingly jumped to move upward. After that it has been making excellent moves, keeping a trend with the market.

Therefore, you must not miss any chance for investing in the most suitable scheme. Reap the best benefits of saving taxes and creating wealth from one investment. If you want to track the performance of other ELSS funds before making your investment, then you can check them according to the suitable AMCs we have for investments. We at MySIPonline, are always active to simplify each step of yours toward investments. Save your taxes now.

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