Want To Invest In Tax Saving Mutual Funds Avoid These Mistakes

Tax Saving Mutual Funds: Equity Linked Savings Scheme (ELSS) is a tax saving mutual fund, under which you can save tax up to Rs 1.5 lakh on your annual income under Section 80C of Income Tax. There is a lock-in period of 3 years under this mutual fund. Apart from saving tax, this fund also gives good returns to the investors.

In such a situation, those who want to invest in mutual funds and also want to save tax, can invest in these schemes. If you are also going to invest in this fund before March 31, then some mistakes should be ignored. Let us know which mistakes should be avoided while investing in ELSS.

Do not invest in ELSS only for tax saving

According to experts, one should not invest in ELSS only for tax saving. Track record, investment style and other things should be looked at under this fund. ELSS fund should be selected on the basis of performance base and strong portfolio, tax saving can be taken as an advantage.

Choose funds according to the market

Funds should be selected according to the market, investing for a short time can be risky for you. Compared to this, staying invested in this equity fund for a long time can be more correct. Instead of lump sum investment, you can also start investing in SIP in this financial year.

don’t take too many risks

Equity Linked Savings Scheme is a high risk fund. In such a situation, experts say that a person who stays invested for a long time can get profit. If you are a senior citizen and do not want to take risk, then you can invest in schemes like PPF.

Do not select any fund

If you select any fund in ELSS then you should know the details about it. That fund should be selected on the basis of performance. One should choose the fund according to the market. Random selection of any fund can cause loss.

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Recurring Deposit: SBI, HDFC Bank, ICIC, PNB or Yes Bank, who is paying more interest on RD