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.