Invest In Tax Saving Mutual Funds Online
Most people prefer to play it safe while making their first investments. They usually put their first savings in a fixed deposit with their bank. Debt instruments offer assured returns, are easy to understand and do not require as much homework as equities or real estate. This asset class offers multiple options to the investor, each with its own unique features. This may lead to confusion for the newbie investor.
Why to Invest?
Fixed-income products are the cornerstone of an individual's investment portfolio. Whether it is the humble bank fixed deposit, the PPF or a government bond, these provide stability to your portfolio. Experts concur that any asset allocation plan should include fixed income or debt. Portfolio should have an allocation to debt to ensure a solid foundation. Even the most sophisticated, risk-savvy investors would do well to put a part of their money in debt, which would protect their portfolios from a sudden fall in the riskier asset classes.
Where to Begin?
Be clear about what you want when you invest in debt. If you are looking for a regular stream of money and the preservation of capital, then a simple fixed deposit that pays interest every month or quarter makes sense. If you do not need the regular inflow, choose the cumulative option of the fixed deposit or go for NSCs. The PPF is a long-term investment that locks up your money for 15 years. Simply leaving your money in safe, fixed-income instruments is not a productive long-term solution. You will be lucky if you beat inflation with these investments.
The tax incidence is another important point to consider. For those in the higher tax brackets, it makes more sense to invest in instruments that give higher post-tax returns. For those in the lowest tax bracket, investment in fixed deposits is a good idea.
However, to get more out of fixed income, you will need to move a bit higher up the risk
ladder. Bond funds and FMPs provide a good alternative to traditional instruments as these can offer decent capital appreciation, even though the returns are not guaranteed.
Top Rules for Debt
Consider the reinvestment risk.
Be clear how you will deploy the money when the instrument matures and you get the money back along with the interest or capital gain.
Check the tax efficiency of investment.
The interest from FDs and NCDs is taxed at the rate applicable to your income slab. The income from debt funds is treated as capital gain if the investment is for over a year.
Match investments with cash-flow needs.
Match investments with cash-flow requirements. If you need money in three years, invest in an FD or FMP. If you can wait, go for instruments with longer terms.
Happy Investing!!
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Invest in Tax Saving Mutual Funds ( ELSS Mutual Funds ) to upto Rs 1 lakh and Save tax under Section 80C.
Invest Tax Saving Mutual Funds Online
Tax Saving Mutual Funds Online
These links can be used to Purchase Mutual Funds Online that are regular also (Investment, non-tax saving)
Download Tax Saving Mutual Fund Application Forms from all AMCs
Download Tax Saving Mutual Fund Applications
These Application Forms can be used for buying regular mutual funds also
Some of the best Tax Saving Mutual Funds available ( ELSS Mutual Funds )
- ICICI Prudential Tax Plan Invest Online
- HDFC TaxSaver Invest Online
- DSP BlackRock Tax Saver Fund Invest Online
- Reliance Tax Saver (ELSS) Fund Invest Online
- Birla Sun Life Tax Relief '96 Invest Online
- IDFC Tax Advantage (ELSS) Fund Invest Online
- SBI Magnum Tax Gain Scheme 1993 Invest Online
- Sundaram Tax Saver Invest Online
- Edelweiss ELSS Invest Online
Best Performing Mutual Funds
- Largecap Funds Invest Online
- DSP BlackRock Top 100 Fund
- ICICI Prudential Focused Blue Chip Fund
- Birla Sun Life Front Line Equity Fund
- Large and Midcap Funds Invest Online
- ICICI Prudential Dynamic Plan
- HDFC Top 200 Fund
- UTI Dividend Yield Fund
- Mid and SmallCap Funds Invest Online
- Reliance Equity Opportunities Fund
- DSP BlackRock Small & Midcap Fund
- Sundaram Select Midcap
- IDFC Premier Equity Fund
- Small and MicroCap Funds Invest Online
- DSP BlackRock MicroCap Fund
- Sector Funds Invest Online
- Reliance Banking Fund
- Reliance Banking Fund
- Tax Saver MutualFunds Invest Online
- ICICI Prudential Tax Plan
- HDFC Taxsaver
- DSP BlackRock Tax Saver Fund
- Reliance Tax Saver (ELSS) Fund
- Gold Mutual Funds Invest Online
- Relaince Gold Savings Fund
- ICICI Prudential Regular Gold Savings Fund
- HDFC Gold Fund
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