Save tax and make your invested amount earn more

 There are thousands of options available to an individual when he wants to go for investment. However, every investment option has certain benefits and limitations. A Prudent investor is one who takes note of   both sides of various investment avenues. This can help him to choose the perfect option, which is suitable as per is financial profile.

The mutual fund:

After looking at various options for retail investor experts recommend mutual Fund. It is a safe, secure and easy option to go for. One can start investing in this option with even 500 rupees a month. It is called a systematic investment plan. The best of this fund is one can save on his Income Tax also. As per the provisions provided by the authorities under section 80c, one can invest up to 150000 yearly, and his taxable income is reduced to that amount.

The options:

Another notable point of this investment option is one can go for investment in instalment also. Hence one does not need to face the burden of paying a heavy amount. One can save a few thousand every month, which can be directly debited from his bank account and get invested in the respective Mutual Fund. The mutual fund company provides a statement of investment to the investor where he can find required details of his investment.

The tax saving Mutual Funds:

For those who want to save their Income tax, it is necessary to know this option well. One needs to find the best tax saving fund to have good return with the benefit of saving on tax. It is known as a close-ended option which does not allow the investor to withdraw the amount from the fund before the agreed term. In a mutual fund, one can get a good return only if the concerned amount if kept invested for a period of 3 to 5 years. Hence in mutual fund and especially in tax saving funds, one can get a good return that can help him in future.

The system:

For any investor of a mutual fund, it is necessary to know the system. The amount collected by the mutual fund company is invested in the share market. There is a dedicated manager who is known as a fund manager deployed by the company to safeguard the investment in the market. His primary goal is to fetch maximum return from the market so that the company can offer good NAV to the investors. Every company health-specific strategy when it comes to launching the mutual fund in tax saving fund category. Nowadays, companies entertain offline as well as online applications from investors.

Almost every mutual fund company has tax-saving funds where it offers a good return where   a few   are known as   the best elss tax saver funds. The investor needs to check with the NAV of various mutual fund companies in various schemes and select one which can be termed best for him. If one keeps the mutual fund investment for the long term, it can surely offer an exceptional return to the investor with the help of which he can achieve his future goals. Hence the investors who want to have a good amount of savings in future need to go for this option. This option also has risk but compared to other options it can be termed as a safer one