Know How to Invest and Save Tax

An organized investment will not only give you long term benefits but will also help you save tax. Equity-linked Saving Schemes (ELSS) funds can help you save your taxes while the investment is made on equity-related securities of corporates and other similar equities. If you are willing to save up to Rs 46,800 in your Tax, then ELSS investment is the best choice you can make. One of the advantages of investing in ELSS is that there is no maximum limit of investment which indicates the fact that a large part of your money can be freed from additional tax which you need to pay otherwise.

The ways ELSS works

ELSS is a tax saving scheme under section 80C of income tax. This is a mutual fund scheme with a locking period of three years. The benefits of investing in such schemes are that the mutual fund returns will grow over time and will provide you with great benefits at the time of retirement. However, this type of scheme is open-end schemes allowing you to withdraw the money after the locking period is over. It is suggested that the fund should remain invested to make sure that the pre-decided goals of retirement are met. Alongside saving your tax these saving schemes would offer you security at the time of your retirement.

What are the benefits of investing in mutual funds?

One of the biggest benefits of investing in mutual funds is that you need not have to go through a complicated process of investment. The mutual funds are easy to understand and you know exactly where you are investing. You need not have experience or prior knowledge of the stock market to invest. You can invest as low as Rs.500 in the schemes. While you are willing to invest higher, the sky is the limit. With investment in a mutual fund, you can have professional management of your money. Rather than getting deep into the market analysis you can just invest and do other important things in your life. There are a variety of mutual fund investments available. ELSS is one scheme that is beneficial for investors who are willing to save a good amount of tax and get higher returns. If you are willing to make a smart investment than mutual funds are the best ways to do so. You may consult a fund advisor to know the details of your investment and save a good amount of money for the future.

Things to know before investing in Mutual Fund

Before you decide to invest your hard-earned money anywhere you need to know the pros and cons of the same. Investing in mutual funds is no exception. You must know the plusses and the risks before you decide to make an investment. To get you a clear picture of the mutual fund this article presents details and insight into the stock market. This can be extremely helpful when it comes to making investments in the market.

Difference between mutual funds and stocks

Knowing the difference between mutual funds and stocks is essential for an investor. Making an analysis of mutual funds vs stocks is beneficial before making your investment strategies. The stock market offers you share which is the strategy of the business to grow. You have the choice to select stock by understanding the market trend. It needs professional analysis and skills to make sure that the right investment is made. Mutual fund, on the other hand, is passive in nature. You need not have to analyze the market for such investments because there are market professionals and fund advisors who would take care of the investment that needs to be made. Investing in mutual funds is safer and generates profit in the long term. You may opt for systematic investment plans (SIP) where a fixed amount of investment over a period of time can be made.

Understanding the risk in mutual fund investment

To have a clear picture of mutual fund investment you also need to assess the risk in mutual fund investment. The level of risk depends on the amount of investment made in the mutual fund. However, there are certain market risks associated with the same. In the circumstance an unavoidable risk prevails in the entire market the mutual fund will also be affected. In certain cases the investments cannot be sold by the fund due to lack of buyers. This is known as liquidity risk. Another major risk is the credit risk where the issuer of the bond is unable to repay the bond. Such risk will lead to a worthless investment from the part of the investor as the investor will generate no profit and the amount invested will be lost.

Though there are certain risks associated with mutual fund investment, such investments are safer than stocks and bonds. All you need to know is how much to invest in mutual funds. For the same, you may consult a fund advisor.

All about Investments

Everybody has a certain level of concern for the future. It is a known fact that the security of the future lies in growing money from time to time. Now here comes the big question “how to grow money?”. There is no hidden secret in that and the answer is simple. Money grows with systematic investments. To make sure that you understand the way of systematic investment you need to understand certain concepts. Here are a few essential concepts and information that you need to have for a systematic investment.

The role of inflation

Inflation is a pattern of increase in the price of products and services with passing years. The rates of inflation would tell you the ways your purchase power would decrease every year while investments for the future is not made. An inflation calculator can be useful for predicting the future cost of products and services giving you a clear picture of how much you need to gain a return on your investment to maintain a standard of living in the future. If you are asking yourself "How much to invest for the future?" then this calculator can give you proper information about your investments.

Benefits of investing in mutual funds

Investing in a mutual fund is like investing your money in a way that your money is professionally managed. You can invest a small amount of money yet be sure that a professional handle your money to get you the best returns. This is an approach in which you can put in your contribution to the pool of money that will be invested collectively according to the objective of the fund. To make sure that your investment generates profit according to your expectations you need to calculate the investment values at the time of maturity. A mutual fund calculator is used for calculating the fund returns based on the investments being made. 

SIP the easiest form of investment

If you are willing to invest in mutual funds than there is a disciplined manner to do so. The mutual funds offer a systematic investment for the investors when it is popularly known as the Systematic Investment Plan (SIP). The process of sip investment is the way through which a fixed amount of money can be invested within a pre-defined interval for a particular mutual fund. With SIP you can invest as low as Rs. 500 to start with. With investments in SIP, you will not have to worry about the dynamics of the market and reap benefits in the long term. 

So, Understanding these basic concepts will allow you to grow your money over the years without worrying about the future.