Mutual funds are considered as the best and the most reliable way to invest money in the long term. But a very few investors are aware that the mutual funds can also provide you the way to save some tax amount. Yes, you heard it right there are numerous mutual funds schemes that let you get the tax rebate up to an extent. Under section 80C, you can easily save the tax up to 1.50 lakhs. So, if you were taking mutual funds as only a way to invest your money that can help you get good results, now you can plan your tax rebate through them too.
In this article, we will talk about the various mutual fund tax benefit and know whether you should opt for them, or not. Also, we will also compare the mutual funds to other ways to get tax benefits. So, stay tuned with us until the end of the article and know about saving tax using the mutual funds and what are the risks and benefits involved in it.
ELSS: Mutual funds to save tax
ELSS or Equity Linked Saving Schemes are one of the most popular and reliable ways to get the best tax benefits under section 80C. Unlike the other investment schemes like the PPF, tax saving FD and others, the ELSS has better flexibility and reliability along with a lot better returns. So, if you are after a tax saving scheme to save some money for your own, then start searching for the best mutual funds under ELSS and grab the legal benefits.
The ELSS is actually a type of mutual fund investment that mainly deals with the equity and equity-related bonds. The Equity bonds are known to have better reliability and by investing your money to them, you can be assured of getting better results along with the tax rebate under 80C.
The direct mutual fund app are beneficial for the long term and if you were looking for a goal-oriented investment then they are considered as the best mode of investment and are more capable to provide good returns. By investing in the ELSS, you can easily get better results and save a good amount under 80C.
So, as a normal investor who is willing to achieve a financial goal in a few years, and also is looking for the tax rebate, we would suggest you go with the mutual funds by knowing your needs. This way you can easily manage your finances more efficiently than ever before.
A few mutual funds that you can rely on for the tax benefits that are performing great in the past few sessions are Axis Long term Equity funds and Aditya Birla SL Tax Plan. Try them and other in the category to get the maximum tax benefits possible.
So, whether you are looking for a more secure way to invest your money to share market directly and also at the same time are after a tax saving scheme that can legally help you save the tax, the mutual funds can be a lot more than just useful for you. So, manage the investments more suitably and see your money grow like never before.