Good option for mutual fund investment.

Investing in mutual funds is considered to be the best investment today.

The only reason is that if any jobber or businessman wants to increase his money along with his work and does not have much time to think about it, then mutual fund investment is a good option in front of him.

Also, it is most useful for such investors who understand the ups and downs of the market but are not able to stay connected with it directly.

Job or business does not give them enough time to invest with the movement of the market and withdraw their money at the right time.

Mutual funds provide a great opportunity for such people so that they can get more returns for their money. 

There is also a fund tax saving fund in mutual funds which is generally called ELSS (Equity Link Saving scheme).

Since it is a tax saving scheme, some restrictions also come with it.

Means there is some locking in time in this scheme.

It is clear from this that during this time you cannot withdraw the invested amount.

Usually this lock-in time is at least three years. 

ELSS ELSS are such mutual funds, the majority of which (more than 65%) is invested in equity and equity linked securities.

Also, a part of it is also invested in fixed-income securities etc.

Since investment in these comes with lockin time.

So the benefit of tax exemption can be availed by the government under Section 80C of Income Tax.

It is also necessary to clarify that under this section only Rs 150,000 per annum is eligible for tax exemption.

Because here there is income along with tax exemption, that's why it is also being called tax saving scheme.

For information, let us tell you that some other investments and expenses also come under Section 80C of Income Tax.

These include EPF, PPF, NSC, Senior Citizen Saving Scheme, Sukanya Samriddhi Yojana, Life Insurance etc.

All these are included in the tax limit. 

Understand the main points of Tax Saving Mutual Fund or ELSS like this

Tax saving mutual fund or say mutual fund is a way of investing the money of many people in the market.

It is clear from the name itself that the company through which we are investing collects money and invests.

The company has its own fund managers who always keep an eye on the market movements and look at both the aspects of safety of money with better returns while investing.

It is as important to make it clear here as it is necessary to guarantee something.

Investment made in the market is always with a risk or say risk.

So those who know how to bear the risk, then invest in any market related fund.

Fund managers make these investments in government bonds, fixed deposits of companies, shares or gold etc. or they invest in them as per the need and time.

With the understanding of the fund manager, it is decided that how much the money will grow.

Also, it decides when to invest and when to withdraw. 

What is the return potential in mutual funds? 

The answer to this question is not accurate.

For this it can be said that what will be the speed of the vehicle moving on the road.

Anyone can tell.

No.

How is the road, how is the driver and how is the traffic.. Many factors decide the speed of the vehicle on the road.

By the way, tax saving mutual funds also invest in shares only, so maximum money is expected to be made from it.

Anyway, India's economy has been progressing continuously for the last few decades.

From foreign investors to foreign companies have shown interest in investment and manufacturing here and it is continuously increasing.

In such a situation, the future of India is bright in the coming 20 years and the return of investment is expected to be profitable.

We are not taking a guarantee once again.

Remember the market has its own tricks.

If we look at the statistics, many mutual funds have also given annual returns of 21 percent in the last two decades.

It is also said that even gold has proved to be pale in front of MF.

Some even say that property investment has also been low.

That is why if you want to earn the maximum from your tax saving investment, then invest in tax saving mutual funds ie ELSS.

You can also invest in installments through SIP in

mutual funds. Mutual funds have the facility of lump sum and SIP.

You have the convenience of investing through SIP.

You can invest a fixed amount on any one date of the month.

Now every month money is automatically deducted from the bank account for these SIPs.

If the money is deducted in different months, then the units are bought at different times in your mutual fund account.

This has the advantage that it handles the ups and downs of the market.

Finally just one thing.

So far, it has been seen that in the last two decades, investment in stock market mutual funds has given at least 11 percent annual return, whereas tax saving returns of up to 18 percent have been received.

The market has also gained a lot of strength with the progress of the country in the last two decades and is continuously moving towards progress.

It is a different matter that the market is always full of risk, so only that person who is ready to take this risk should invest in any investment related to the market. 

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