Best answer: Which mutual fund is good for tax saving?

Which mutual funds can save tax?

a. ELSS funds are the only tax-saving funds within the Rs 1.5 lakh limit which has the additional advantage of giving equity-linked returns. b. Investing into ELSS allows you dual benefits – you get capital appreciation and tax benefits.

How do I choose a tax saving mutual fund?

How to Choose Best Tax Saver Mutual Funds

  1. Investment upto Rs. 1,50,000 in an ELSS mutual fund is allowed as a deduction under section 80C of the Income Tax Act.
  2. Investment in such funds has the potential to generate high returns as these tax saving funds invest primarily in equity and equity linked instruments.

Should I invest in tax saving mutual funds?

It not only helps you save taxes, but also creates wealth for investors with high risk appetite. ELSS is also the most liquid and convenient investment options under Section 80C considering the SIP route. Investors should consult with their financial advisors if ELSS schemes are suitable for their tax saving purposes.

THIS IS IMPORTANT:  Question: Does PayPal report to IRS?

How do I avoid capital gains tax on mutual funds?

6 quick tips to minimize the tax on mutual funds

  1. Wait as long as you can to sell. …
  2. Buy mutual fund shares through your traditional IRA or Roth IRA. …
  3. Buy mutual fund shares through your 401(k) account. …
  4. Know what kinds of investments the fund makes. …
  5. Use tax-loss harvesting. …
  6. See a tax professional.

Which is best mutual fund?


Scheme Name Plan Category Name
SBI Large & Midcap Fund – Direct Plan – Growth Direct Plan Large & Mid Cap Fund
Large Cap Fund
Canara Robeco Bluechip Equity Fund – Direct Plan – Growth Direct Plan Large Cap Fund
Franklin India Bluechip Fund – Direct – Growth Direct Plan Large Cap Fund

What is best time to invest in mutual funds?

There is no best time as such for investing in mutual funds. Individuals can make investments in mutual funds as and when they wish. But it is always better to catch the funds at a lower NAV rather than higher price. It will not only maximise your returns but also lead to higher wealth accumulation.

How do I choose a good ELSS mutual fund?

If you are planning to invest in ELSS fund to save taxes for the current financial year ie. FY2019-20, here are 6 parameters to consider before choosing ELSS fund.

3. Review of Returns of the ELSS Funds

  1. Annualized Returns i.e. CAGR.
  2. Trailing Returns.
  3. Calendar Returns.
  4. Rolling Returns.

Is mutual fund better than PPF?

In conclusion, mutual funds will be more beneficial to one’s portfolio, considering the above factors. One can avail tax benefit from both i.e. PPF as well as ELSS category of mutual funds under section 80C of the Income Tax Act, 1961. However, mutual funds provide you the additional benefit of diversification.

THIS IS IMPORTANT:  You asked: What are taxable miles for IFTA?

Is Quant tax plan is good?

Quant Tax Plan (Growth) is a good choice within tax saving mutual funds. … Tax saving funds provides inflation beating growth over the long term and is suitable for investment objectives with duration of 10-15 years or longer (minimum 5 years).

Is Mirae Assets safe investment?

It is rated five-stars under BusinessLine Portfolio Star Track MF Ratings. Mirae Asset Emerging Bluechip has outperformed the category over three and five-year periods on a rolling return basis.

Which is the best tax free investment?

The easy tax saving investments that should be known by all the taxpayers of India are:

  • 5 years Bank Fixed Deposit.
  • Public Provident Fund (PPF)
  • National Savings Certificate (NSC)
  • Equity Linked Saving Schemes (ELSS)
  • Unit Linked Investment Plan (ULIP)
  • National Pension Scheme.
  • Life Insurance.

How much should I invest in ELSS to save tax?

The investment in ELSS mutual fund schemes can be done either as a lump sum or via monthly systematic investment plans (SIP). By investing Rs 1.5 lakh in a financial year in an ELSS, an individual taxpayer in the highest tax bracket can save tax of Rs 46,800 (inclusive of cess at 4%).

Is ELSS taxable after 3 years?

The Long-Term Capital Gains on ELSS are tax-exempt up to Rs 1 lakh, and dividend received is tax-free in the hands of investors. You can continue to invest in this scheme even after the completion of the lock-in period of three years.

How do I invest in tax savings?

You must invest in equity funds for the long-term to achieve long-term financial goals such as retirement planning. You may invest in direct plans of equity funds and ELSS through an asset management company. However, you could consider investing through a broker for regular plans of these mutual funds.

THIS IS IMPORTANT:  Are home sales subject to capital gains tax?