Smart Tax Planning Made Simple: Invest in Tax-Saving Mutual Funds with ELSS Funds
tax-saving mutual funds that invest primarily in equities, offering investors the dual benefit of tax savings and potential capital appreciation. By investing in ELSS funds, individuals can avail tax deductions of up to Rs. 1.5 lakh under Section 80C of the Income Tax Act, 1961.
These funds come with a lock-in period of three years, encouraging long-term wealth creation while reducing tax liabilities. You can invest in a wide range of ELSS mutual funds on the Bajaj Finserv Mutual Funds platform. New Fund Offers (NFOs) are mutual funds launched for the first time, offering investors a chance to invest in a new scheme.
While NFO mutual funds can present unique opportunities, investors should exercise caution and conduct due diligence before investing. NFOs can be a part of a diversified investment portfolio, providing exposure to new market segments or investment themes. 1. ELSS Funds: Some NFOs are specifically designed as ELSS (Equity Linked Savings Scheme) funds, which offer tax benefits under Section 80C of the Income Tax Act.
Investing in these ELSS NFOs can help investors claim deductions on their investments up to Rs. 1.5 lakh. 2. Lock-in Period: ELSS funds typically come with a lock-in period of 3 years.
This lock-in period can help investors save on taxes, as it ensures they hold the investment for a longer duration, reducing their capital gains tax liability. 3. Lower NAV: NFOs are launched at a lower Net Asset Value (NAV) compared to existing mutual funds.
Read more on livemint.com
