Tax Saver Funds

Income tax department does offer relief under various sections of the Income Tax Act so that paying taxes isn’t burdensome. 

There are various options available under sections is 80C, under which you can take off Rs 1.5 lakh from your taxable income and thus save a considerable amount of income tax. Tax saving mutual funds are one of these options, they come under the category of equity-linked savings schemes, popularly called ELSS

Mutual Fund Companies do keep ELSS schemes in the kitty for investors to enjoy tak benefits and at the same time get returns linked to equity stocks. One thing that investors should keep it in mind is that risk associated with equity funds still remains even if they get tax benefits under Sec 80 C.  

Following are the benefits of Tax saving mutual funds

  • Professional management
  • Liquidity
  • Systematic Investment Plan (SIP)
  • Diversification
  • More choice
  • Low-cost investments
  • Easy to track