Tax Saving Plans

Avail the Benefit of Returns with Tax Saving Investments

When it comes to tax planning, most of us are clueless or depend on uninformed opinions of friends or colleagues. Tax saving is often done haphazardly in traditional investment options at the end of the financial year which saves tax but hardly contributes to building wealth. Mutual funds are quite often considered too risky or too complicated to be considered as investment options.

Traditional investments such as FDs, PPFs, NSCs etc. can give either tax benefit or wealth creation but not both. However, with tax saving investment options like mutual funds, you can achieve both, wealth creation and tax saving. These are the best way to save as much as Rs 46,800 in taxes while creating wealth.

Mutual funds are simple investment tools for people (investors) who wish to create wealth by investing in equity and other securities but do not have enough time or knowledge to do so. Mutual funds are managed by professional fund manager working with licensed and recognized Asset Management Companies (AMCs) who make informed and calculated decisions to invest in various securities with different risk intensities.

The amount earned on these investments is shared with the investors as dividends. The AMCs are monitored by regulatory authorities like AMFI and SEBI to safeguard investors’ interests.

Although mutual funds do not guarantee any exact return on your investment, past performances have shown that an investment in good mutual fund schemes can fetch you approximately 12-15% returns. A slow, steady, and disciplined approach towards mutual funds under the guidance of professionals can give you significant results and also save tax on your hard earned money.

SRE offers professional financial planning for tax saving through a dedicated mutual fund desk that is monitored by qualified and experienced fund managers. SRE selects from various MF schemes such as open and closed-end funds, tax saving funds, equity funds, and growth funds, etc. according to the client’s needs.

Tax Saving Through Mutual Funds

Tax saving through mutual funds harbours numerous benefits for investors. A few such advantages of it have been enumerated below:

  • Save up to Rs. 46,800 in taxes by investing the right tax saving mutual funds.
  • Lock-in period of only 3 years.
  • Smaller investment options of as low as Rs. 500 per month through SIP for tax saving.
  • Lump sum investment starting with Rs. 5,000.
  • Low cost as only 0.5 to 1.5 per cent of the investment is charged as expense ratio.
  • Yield higher returns for longer holding periods.
  • Risk balanced by diversifying investments in different securities.
  • Professionally managed by experts such as SRE fund managers with in-depth knowledge of the market.
  • AMCs recognized and governed by regulatory authorities.
  • Flexible investment options – monthly, one time, multiple investments.
  • Invest through user-friendly platforms like SRE.
  • Benefit from equity investment through ELSS Mutual Fund without direct exposure to the market.
  • Build wealth and achieve your financial goals while saving tax every year.

Tax Saving Mutual Funds vs Other Tax Saving Investment Options

ELSS mutual funds have significantly performed better than their counterparts, not only for returns but also in terms of other parameters. A quick glance at a comparison between various tax saving investments will validate why investing in mutual funds could be the best decision for you.

Investment Option Returns Lock in Period Risk Profile
ELSS Mutual Fund 15-18 % (Based on past performances) 3 years High
PPF (Public Provident Fund) 8 % 15 years Low
Tax Saving FDs 7-8% 5 years Low
NSC (National Saving Certificate) 7-8% 5 years Low
NPS (National Pension Scheme) 10-12 % Till the retirement age (60 yrs) Low to moderate
ULIP (Unit linked insurance plan) 12-14 % (Based on past performances) 5 years Moderate to high

Financial Planning for Tax Saving Made Easy with SRE

  • With 30 years of experience, SRE has helped investors like you achieve their financial and personal goals through elaborate and personalised tax saving advice.
  • SRE is empanelled with leading fund houses and brings to you carefully selected and thoroughly researched investment options.
  • Proven track record of providing customized services to clients based on their risk appetite, investing capacity and financial goals.
  • Keeps you updated about the performance of your portfolio and provides valuable suggestions according to market trends.
  • Transparent, hassle-free and user friendly process throughout.
  • Wide network throughout the country for domestic and NRI Clients.