One can find various sources of income with the help of which he can earn a good amount. In some cases, the income is limited, but the tax liability may prove risky for the earner, and hence, it is necessary for such a person to have the right income and income tax planning. For those who want to save tax, the SIP in a mutual fund with tax saving, also known as ELSS can be of immense help. As per the provisions in the income tax act, one can invest up to 150000 in tax saving mutual funds under section 80 C, and hence his tax liability reduces to that extent.
The tax saver mutual funds:
One can find a lot of companies in the world of mutual funds which have this option. Among the known income tax tools, the mutual fund with ELSS can be termed as a leading one. There are end number of benefits that can help one get while he invests in this option. The investor can save a handsome amount of tax while he invests in this option and that too in the form of monthly instalment. The rate of return in this option is also considerably good than many other options across the market.
However, to save the required amount of income tax one needs to go for the option of how much to invest to save tax calculator that can help him find the exact amount that he needs to keep aside every month to meet the desired goal of saving a specific amount of tax after a definite period. Those who love to get good return can also go for this option as it has a fixed duration before which one cannot withdraw the amount he has invested in this option. Hence one can have a good idea before completion of the concerned period about how much will he get from his investment. Hence for the investors, this can be a brilliant option when it comes to saving the tax amount with a good return.
How to invest?
Investing in a mutual fund is simple. One can choose to go to the company and fill the form with a few documents. He can offer the cheque for the payment with required documents, and it will be done. This is called offline investment. There is also another option where the investor can complete the process of investment himself. It is known as the online option. Here the investor needs to upload the documents to the site of the company with his application form that he needs to fill. The payment for the concerned investment can be transferred to the concerned scheme of the mutual fund.
The investment in a large can and small cap can help the investor to have desired aims in a definite period. However, for the investor, it is necessary to find the best option, which is also necessary to have the folio creation over a period. The mutual fund schemes have various options that can make the investor a good amount in a few days.