These are mutual funds that invest in the stock market and give the tax benefit under Section 80C of the Income Tax Act. How this works is that the fund manager will invest in shares of various companies across various industries. So, in fact, it is a normal equity diversified fund. But there is the added tax benefit which a normal diversified equity fund will not have. This sets it apart. And currently, if you invest in such funds, you get a rebate. This is the immediate plus of the ELSS mutual fund.
These funds have a lock-in period of three years. irrespective of the income, the maximum deductions that can be made from your taxable income are up to Rs 1 lakh
Invest in Tax Saver Mutual Funds
.
No comments:
Post a Comment