The Mutual Fund: It can help you save tax also
In the finance market, the mutual fund is considered as one of the best options where one can find a good return on even a small investment. The only thing important here is one needs to give the time to the investment to fetch a good return. As far as flexibility is concerned, one can again find it as one of the best options with ample flexibility in terms of the investment amount, style and even withdrawal. There are ample companies in the market that offer numerous options to the investors who want to fetch a good return on their invested amount with moderate risk and a medium term.
The tax-free mutual fund:
The tax saver mutual fund is known as the equity-linked saving scheme. It is also famous as ELSS in the world of mutual funds. There is almost no AMC which does not have an ELSS in its product list. This fund has got some privileges for which it is popular among the investors who need to pay a handsome amount on their earnings. As per the government norms, such taxpayers can invest up to the amount of 150000 in ELSS on which they won’t have to pay tax. Hence if one invests in this fund, he will have tax burden less to that amount up to 150000, and in addition, he can also earn a handsome return on the amount invested in this fund. The only condition one has to follow is he cannot withdraw the amount for the next three years.
In ELSS, an investor gets several options for the investment. The foremost one is the style of investing the amount. One can invest by offline or online mode. In the online option, one needs to do all the process himself. Those who are good at investing online prefer this option. In this option, one needs to fill the application form on the site and also upload supporting documents on this platform only. The payment can be done with the help of net banking or any other medium of online fund transfer.
In offline, the investor has to approach a broker or company directly where he has to submit a hard copy of documents and also fill the application form. To pay the amount, one can issue a cheque. Once the payment is transferred, the company offers a folio in which he can find all the details of his investment. He can know the number of the folio, NAV of the units allotted, number of units and total amount. In short complete details of the investment are provided in the statement.
For an investor, there can be no better option than a mutual fund. One can find the flexible options of payment as well as a transparent system of investment here. The NAV is changed daily, and one can know the same with the help of the call centre or the website of the company. To invest in this option, one can also go for SIP where he can pay in instalments and still save a good amount on tax.