In India, there are different ways in which one can legally save taxes. Individuals having taxable income often take different strategies to save a good amount of tax. A tax saver fund is a variant of a mutual fund that helps a person to invest and save a lump-sum amount on taxes.
Three top-performing tax saver funds
A large number of tax saver funds are provided by the leading finance companies. However, the taxpayers might be in a dilemma regarding the right fund to choose. Here are the three top-performing tax saver funds that can help you to save a huge amount of tax:
1.Tata India Tax Saving Fund
When it comes to an equity-linked savings fund, you can trust Tata as it gives a number of features. You can be assured of the long term capital growth when it comes to investing in the fund. The tax saving feature is offered as per the guidelines of the Income Tax Act, 1961, Section 80(C). The lock-in period of the mutual fund is of 3 years.
2.MotilalOswal Tax Saver Fund
You can choose the MotilalOswal tax saver fund as it comprises some leading features of the mutual fund. Some of the features you can get from MotilalOswal are 12 to 14% returns on the total amount stored in a mutual fund and a lump-sum tax saving up to Rs 46,800. The lock-in period for the ELSS fund is 3 years and you can get the investment proofs instantly.
3.DSP Blackrock Tax Saver Plan
The tax saver plan from DSP can give the investor the opportunity to save a lot of money for a long period. On the other hand, all the investors can get income tax savings as per mentioned in the Income Tax Act 1961. You can keep your capital for generating the appraisal for either a short or long period. This happens as the investment is done according to multiple portfolios of different instruments of the corporate.
Things to look out for while investing in tax saver funds
Before you invest in any type of mutual fund, never forget to make some considerations that are given below in details:
Look for the features
Whenever you look for a tax saver fund, check all the associated features. You must be aware of the amount that you can invest in the tax saver fund. The tax savings will depend on the total amount invested.
Percentage of return
You must be aware of the percentage of return a tax saver fund can provide you. Always check the websites of different fund providers before you invest any money. Higher the percentage of return, you can save more money.
The tax saving funds charge some amount of money for the investment. You should enquire about the charges that the companies would take.
Investing in a tax-saving fund is a good option to legally save the money that would otherwise be taken by the government. However, you should know that investments in a mutual fund can come with the market risks. You must always have a detailed talk with an investment expert before investing in a tax-saving fund. Furthermore, you must also check if the mutual fund pilot is an experienced person or not.