Want to invest money in Mutual Fund? This scheme may work for you, but keep these things in mind

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Mutual funds have a range of schemes ranging from simple to specialized, where you can invest wisely. But if you are new and want to invest in Mutual Funds then you can start investing in Starter Tax Saving Fund. In this, you also have less risk and the return is also given more.

If you are a new investor and you understand the risk and returns of the market well, then you can make a good fund by investing through Mutual Funds. Mutual funds have a range of schemes ranging from simple to specialized, where you can invest wisely. But if you are new and want to invest in Mutual Funds then you can start investing in Starter Tax Saving Fund. In this, you also have less risk and the return is also given more.

Tax-Saving Mutual Funds
Tax-saving mutual fund investors can be a good option for you. This scheme is also known as Equity Linked Savings Scheme (ELSS). A deduction of up to Rs 1.5 lakh is given under section 80C of the Income Tax Act for investing in this scheme of mutual funds.

Lock-in period of 3 years
Mutual funds that act as a good starter fund are tax saving funds. It comes with a lock-in period of three years, with utility for tax-savers as a start. Due to the lock-in period in tax saving funds, they get good returns. Three years is almost always a long period for long term returns of equities.

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You can continue investing even after the completion of the lock-in period
Investment in this scheme can be made even after the completion of the lock-in period. Apart from this, you can withdraw money whenever needed. Whereas such an option is not given in other plans. In contrast, in most of the other income tax saving options, the money is paid in full only after the maturity of the investment.

You can start investing with Rs 500
One can start investing in Tax Saving Mutual Funds with a Systematic Investment Plan (SIP or SIP) as low as Rs 500. You can do this investment in one go or you can invest it slowly with low risk through SIP. If you want to save the entire 1.5 lakh rupees in tax, then 12500 rupees will have to be invested every month.

how much return
The biggest advantage of investing in tax saving mutual funds comes in the form of investment in equities. If you invest in it for a long time, then you get good returns. In the last 10 years, the ELSS mutual fund category has given returns of about 8.46 per cent.

keep these things in mind
If you are a new investor then you must know about the mutual fund scheme completely. Apart from this, you can also understand the market risk of that scheme. Also, you can take the advice of an expert related to this. You should invest in it only after understanding it completely.

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