For the majority of the salaried people, the tax on their income is a big burden. In this era majority of the people have higher expenses than what they earn and hence saving for payment of tax pinches a lot. However, there are some options in the market with the help of which one can save amount that needs to be paid as income tax. The government has offered a tool under section 80C under which one can invest in tax saving mutual fund up to the amount of 150000 annually and save tax to that extent.
As per this provision, one can invest in ELSS which is also known as tax saver mutual funds in lump sum or instalment as per the SIP plan and get much relief from the pain of paying income tax. The most important part of the investment here is one can go for one-shot payment or in monthly investment as per the SIP which can offer the same benefit of saving tax. In the tax saver funds also one can have ample options which can help him get easy saving of income tax up to the amount of 150000. One can find this scheme with almost each of the mutual fund company in the market.
How to choose the option?
This is an important question from the viewpoint of every investor who wants to go for this option. The pattern of investment in ELSS is same in almost every company, but the vision and plan of the company for the utilization of collected fund differs as per the strategy of accumulating the fund over a period which one must take into account before investing in this option with any company. Hence one needs to find the best elss mutual funds to invest in sip when he wants to go for the saving as per monthly plan.
Why go for SIP in ELSS?
If one has to pay the tax on his income, he has to pay it in one go, but with the help of the SIP, one can invest monthly. The single payment option can be troublesome for an individual as the tax amount may be very high, but the same can be paid via monthly instalment, and hence one does not get affected by the amount that needs to be invested in the SIP as a part of saving on income tax.
Check these points before investing:
Investing in any avenue needs great care and research. If one does not know much about the option or market, he needs to ask an expert or gain enough knowledge that can help him understand if he is investing in the right option or not. In mutual fund also one can get various options such as growth, dividend, dividend reinvestment, pay out and many more. Each of the options here has limits as well as benefits that must be checked by the investor while thinking of the concerned avenue. This can help him save his money as well as meet the target after a certain period. In the market, one can easily find an expert to have assistance. Even the mutual fund companies have their financial planners who can help one find the right option and invest the amount.
The options in a mutual fund:
In the mutual funds also there are ample options available. Each of the option here has some specific benefit which the investor needs to analyse before going for the same. The dividend option is one where one can have a certain amount paid or invested again in the same scheme. Hence the fund can grow significantly in a short span also. The growth option is for the one who just wants to take benefit after redeeming the same at a specific time. He can calculate his return on investment and compare the same to other options in the market.
For those who want to save a little amount every month and get a good return on it can go for the option of SIP, which can help them achieve the goal over a period. There are many companies in the market, and hence, one can easily plan the creation of fund at a certain stage.
Common Search Terms:
- the elss
- which is the best elss mutual fund to invest currently
- what are the benefits of elss?
- what is the difference between elss and mutual funds?
- which is the best elss to invest in 2018?
- what is the difference between elss and sip?
- what is the difference between elss and mutual fund?
- what is the procedure to invest in elss?
- what is the minimum amount to invest in elss?
- which is the best elss fund?
- the elss group
- the elss company
- the elss act
- the elss school
- the elss center
- the elss model
- the elss hotel
- the elss family
- the elss theory
- the elss band
- the elss movie
- the elss series
- the elss book
- the elss system
- the elss challenge
- the elss fund
- the elss show
- the elss news
- the elss effect
- the elss rule