Tax Saving Funds are best investment tools-Tax Saving Funds provided 30% income

Tax Saving Funds

While global economy is slowing down, India is managing to maintain growth.   India is registering more than 7% growth rate.   But when it is questioned how many are directly benefiting with the growth the answer is not satisfactory.   Experts are saying that financial planning is necessary to increase wealth through investments.   Many financial tools are available in various sectors.   Traditional investors look for PPF, post office, equity, mutual funds, gold schemes etc.   Of all these equity markets are the most attractive.   The advice of investment experts is to give preference for Equity Linked Saving Schemes – ELSS.   These are tax saving funds also.

Tax Saving Funds are the best investment tools for new investors in stock market.   The investments gathered from the investors in invested in stock markets in tax saving funds.   Under section 80 C of income tax exemption act, tax benefits will also be available. Another interesting feature in ELSS Tax saving funds is that they have least lock-in period.   There will be no entry or exit charge.   Investors cannot withdraw from the scheme till three years and this reduces the common risk for investment in equity market.   It is beneficial to invest in SIP method but since this 2011-12 financial year is coming to an end, those who want to reduce tax can invest at a time.   Tax saving funds have provided more than 30% income in the past three years.