Skip to main content

Mutual fund is a good choice to save income tax

Tax Saving Mutual Funds Online

Current open Infra Bond Application form

MUTUAL fund, in its essential detail, is a pass-through vehicle through which an investor can invest in professionally managed portfolio of disparate asset classes.


Through this medium, an investor can invest in asset classes such as domestic equities, gilt, corporate bonds, money market instruments, gold, overseas equities. The choice of scheme is of course dependent on the investment objective, the time horizon and the risk profile of the investor.

Amongst the key benefits of investment in a mutual fund is the potential of high return, objective driven investment, professional portfolio management service, competitive investment costs, and potential tax benefits.

Mutual funds provide tax saving benefit in two principal ways. One is through the means of tax arbitrage, and other through deductions available under Section 80C for investment in the equity-linked savings scheme (ELSS).

The tax arbitrage, here, implies the different incidence of tax rates observed for largely similar risk-return portfolios of the mutual fund fixed maturity plans (FMPs) and the commensurate investment deposits.

For instance, if the FMP and the investment deposits are for a similar term period (of less than one year), and may have similar returns potential, yet, the incidence of actual tax rate may be different. Thus, the net yield on mutual fund FMP investment may be better than that of a deposit. A similar advantageous tax rate arbitrage is possible for FMP investments having an investment horizon of one year and more.

From a middle class professional's point of view, it is an ELSS investment that may provide a more effective tax-saving role. The investment in the ELSS not only provides the deduction from the gross taxable income (up to the extent of Rs 1,00,000), but it also has the potential of equity-generated returns. The investment under this scheme is locked-in for a period of three-years.

Other than that, nearly all the features and facilities for an ELSS investor are similar to that available in the diversified equity scheme. Thus, an investor can avail the SIP (systematic investment plan) facility to spread out the investment period over a long period of time, and may also utilise this to average the cost, reduce the tax incidence and garner competitive returns.

Moreover, the long-term return potential of equities provides an added advantage for an ELSS investor. The CAGR (compound annual growth rate) performance of Sensex in the 1980-2011 period has been around 16.64 per cent per annum. In other words, a one time hypothetical investment of Rs 10,000 in Sensex on January 1, 1980, would have grown to Rs 13,36,000 on November 30, 2011.

The investor can also utilise the SIP facility for investment in ELSS to not only plan tax savings, but can also build a long-term investment corpus. For example, an investor investing Rs 5,000 per month since January 1980 till November 2011 in Sensex would have invested a total of around Rs 19,10,000. But the value of his/her corpus would have expanded to Rs 4,03,00,000 by the end of November 2011. It is potency of this equity return profile, which gets augmented by the tax savings that makes ELSS an apropos medium of investment for the long term.

 

 

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

Invest in Tax Saving Mutual Funds ( ELSS Mutual Funds ) to upto Rs 1 lakh and Save tax under Section 80C.

 

Invest Tax Saving Mutual Funds Online

Tax Saving Mutual Funds Online

These links can be used to Purchase Mutual Funds Online that are regular also (Investment, non-tax saving)

 

Download Tax Saving Mutual Fund Application Forms from all AMCs

Download Tax Saving Mutual Fund Applications

 

These Application Forms can be used for buying regular mutual funds also

 

Some of the best Tax Saving Mutual Funds available ( ELSS Mutual Funds )

  1. HDFC TaxSaver
  2. ICICI Prudential Tax Plan
  3. DSP BlackRock Tax Saver Fund
  4. Birla Sun Life Tax Relief '96
  5. Reliance Tax Saver (ELSS) Fund
  6. IDFC Tax Advantage (ELSS) Fund
  7. SBI Magnum Tax Gain Scheme 1993
  8. Sundaram Tax Saver

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

Application form for Tax Saving Infrastructure Bond and more information

Current open Infra Bond Application form

 

Submit filled up application    Collection canter near you

 

Popular posts from this blog

ICICI Pru Mutual Fund Dividend

ICICI Prudential Mutual Fund has announced dividend under the following schemes: Scheme Dividend ( Rs /unit) ICICI Pru Capital Protection Oriented Ser V Plan B-D 0.03611325 ICICI Pru Capital Protection Oriented Ser V Plan B Direct-D 0.03611325 ICICI Pru Balanced Advantage Direct-DM 0.06 The record date has been fixed as February 08, 2017. ------------------------------ ------ Invest Rs 1,50,000 and Save Tax upto Rs 46,350 under Section 80C. Get Great Returns by Investing in Best Performing ELSS Funds Top 4 Tax Saver Mutual Funds for 2017 - 2018 Best 4 ELSS Mutual Funds to invest in India for 2017 1. DSP BlackRock Tax Saver Fund 2. Invesco India Tax Plan 3. Tata India Tax Savings Fund 4. BNP Paribas Long Term Equity Fund Invest in Best Performing 2017 Tax Saver Mutual Funds Online Invest Best Tax Saver Mutual Funds Online Download Top Tax Saver Mutual Funds  Application Forms For further information contact  SaveTaxGetRich on 94 8300 8300 ------------------------------ ------ Leave y...
Read more

Hidden Bank Fees

  What Banks Hide From Customers Imagine after a peaceful and exciting holiday you receive your bank statement with steep charges. You then rush to your bank and start confronting staff members and to your dismay, you come to know that the high end debit card was charged very heavily. Wouldn't this cause damage to your finances? So remember, the world outside is full of deceptive and double cheating people. Unethical practices are always used by company sales person in order to meet the target. Credit card companies, mutual funds and bank institutions always play dirty tricks to lure customers and the practices are rampant. So here's how you should be careful while dealing with your banks: High End Debit Card Charges While opening an account with a bank you opt for a debit card with minimal charges. But later on when you upgrade your card and opt for high end debit card the annual charge rise by a good amount. Though such a card has slew of features but it all comes at a high ...
Read more

Partial withdrawal from PPF

  Public Provident Fund (PPF) account has a lock in period   If you opened a PPF account to meet your retirement needs,, think twice about withdrawing from this fund before retirement. But provided it's an emergency here are the rules. Public Provident Fund (PPF) account has a lock in period before which you cannot withdraw your money.   The partial withdrawal is allowed after the completion of 6 financial years . This means that you will be allowed a partial withdrawal from 1 April 2017. The maximum partial withdrawal allowed is the least of the following: 50 percent of the account balance at the end of fourth financial year, 31 March 15 50 percent of the account balance of the end of previous financial year, 31 March 17.   There's a loan option available on your PPF account between the fourth and the sixth financial year. You can obtain a loan of up to 25 per cent of the balance in your account. However, this will attract interest of 2 percent more than the prevailing ...
Read more

Updating a minor PAN card upon becoming adults

  Updating a minor's PAN card once they become adults A PAN card issued in the name of a minor does not contain the minor's photograph or signature, and therefore, cannot be used as a valid proof of identity. Once a minor PAN card holder turns 18, the relevant changes must be made in the PAN records. A new card is then issued bearing a photograph and signature. Application The applicant is required to fill up the "Request for new PAN card andor changes or correction in PAN data" form. The form can be filled up online by accessing NSDL's Tax Information Network website and clicking on the online PAN application tab. Information The applicant must mention the existing PAN number in the application and check the `photo mismatch' and `signature mismatch' boxes, and submit the online form. The form must also be printed out, signed by the applicant, and submitted along with two photographs. Documents Identity and address proof in the form of a copy of the app...
Read more

ICICI Prudential Value Fund Series I

Invest In Tax Saving Mutual Funds Online Download Tax Saving Mutual Fund Application Forms Buy Gold Mutual Funds Call 0 94 8300 8300 (India)   Performance of the scheme will be benchmarked to the S&P BSE 500 index ICICI Prudential Value Fund is a closeended equity scheme. The scheme will have tenure of three years (1095 days) from the date of allotment of units. Units of the scheme will be fully redeemed at the end of the maturity period, unless rolled over. NFO PERIOD:   The NFO is open from October 18 to 28. The minimum subscription during the NFO period is Rs 5,000. SCHEME OBJECTIVE:   The scheme aims to provide long-term capital growth by investing in a well-diversified portfolio of equity and equity-related securities. INVESTMENT STRATEGY:     The fund proposes to invest in stocks that are trading at a huge discount in the BSE 500 index and plans to book profit and distribute dividen...
Read more
Related Posts Plugin for WordPress, Blogger...
Invest in Tax Saving Mutual Funds Download Any Applications
Transact Mutual Funds Online Invest Online
Buy Gold Mutual Funds Invest Now