How Tax Saving Mutual Funds Work: A Complete Overview

Wiki Article

Investing in Tax saving mutual fund (ELSS) is simple and offers dual benefits: tax savings + high returns. You can invest via SIP (Systematic Investment Plan) or lump sum to save taxes under Section 80C (up to ₹1.5 lakh deduction). ELSS mutual funds have a 3-year lock-in period and invest primarily in equities, making them an excellent option for long-term wealth creation. To start investing, open a mutual fund account, choose a top-performing ELSS fund, and decide on SIP or lump sum investment. Learn how to select the best ELSS funds based on returns, expense ratio, and risk appetite.