Mutual Funds

  A typical search history for a young professional living in Bangalore, who has just started receiving steady salary might look like:  "Highly-rated restaurants in Bangalore" "Popular travel destinations in India" "Top-performing mutual funds in India"   While it's tempting to spend all your salary on the luxuries you’ve been dreaming of, your financial responsibilities and monthly expenses should take precedence. However, this does not mean that all your dreams have to fade away entirely. To make sure you fulfil all your dreil all your dreams and obligations, start saving and invest in mutual fund online in India in order to achieve good returns.   Let's begin by answering the question, "What is a mutual fund?" Before we proceed, let's quickly review the basics. Mutual funds are investment schemes managed professionally by asset management companies (AMC) to meet the needs of individual investors. The AMC pools funds from multiple ...

Equity-Linked Savings Schemes (ELSS) and Unit-Linked Insurance Plans (ULIP) are popular tax-efficient investment choices in India. There are, however, some significant differences between the two. ELSS funds are tax saving mutual funds that invest largely in equity shares of publicly traded firms. These funds' returns are market-linked and generally tend to outperform fixed deposits and other fixed-income assets. The returns, however, are subject to market swings, and there is risk associated with this investment.  In contrast, a ULIP is an insurance policy that also includes an investment component. The ULIP premium is invested in several fund alternatives, such as equity, debt, or a combination of the two. ULIPs also provide life insurance coverage, with the death benefit being the greater of the sum assured or the fund value.  Let us look at the differences between ULIPs and ELSSs in more detail. The Distinction Between Tax Benefits Equity-Linked Savings Schemes (ELSS) and ...

When compared to other investment tools available under Section (80C) of the Income Tax Act of 1961, investing in ELSS mutual funds is an economical approach to saving taxes. ELSS has a shorter lock-in period and expert fund management, which can result in wealth accumulation. This article will teach you more about the various characteristics of ELSS funds. What are Equity-Linked Savings Schemes? The best ELSS mutual funds are managed by skilled finance experts known as fund managers and are available through nearly all investment houses in India. ELSS mutual funds are the only type of mutual funds that qualify for tax breaks. Investing in ELSS will save you up to Rs 46,800 (annual tax deductions of up to Rs 1,50,000) per year in taxes. You can, however, invest more than the specified amount, but any excess over Rs 1.5 lakh would not qualify you for tax benefits under Section 80C. The returns earned by ELSS are subject to capital gains tax (LTCG). The Union Budget 2018-19 reinstated...