The Best Tax Saver Mutual Funds to Invest In for 2023
If you fall under the salaried class, you know the importance of investing in mutual funds. Now, these funds are also of many types, and when we talk about saving on taxes, this is where the tax-saving mutual funds step in. Not only do these help you save the taxes, but they also allow you to grow your wealth with time. Once you opt for the best mutual funds that help with saving taxes, you are on the way to growing your wealth. So choose carefully.
Moreover, keep in mind that these funds are managed by professional fund managers who have expertise in investing and regular monitoring. They adjust the portfolios accordingly to maximize the returns.
What are tax saver mutual funds?
Also known as Equity-Linked Saving Schemes (ELSS), these funds are mutual funds that offer tax benefits under Section 80C of the Income Tax Act. So, these funds invest in equity markets and offer higher returns compared to recurring or fixed deposits. Moreover, when you plan to invest in such funds, you not only save on tax but also grow your wealth over the long term.
How does investing in ELSS help in saving tax?
As per Section 80C of the Income Tax Act, it allows you to claim deductions on your taxable income up to a limit of Rs 1,50,000. This means the amount invested in ELSS can be deducted from your taxable income, thereby reducing your tax liability.
For an easy understanding of all the readers, say, for example, if your taxable income is Rs 10 lakhs and you invest Rs 1.5 lakhs in ELSS, your taxable income will become Rs 8.5 lakhs.
Further, the profits one gain at the end of the ELSS’s maturity are categorized as Long Term Capital Gains (LTCG). These are taxed at a 10 percent flat rate. Moreover, if it is below Rs 1 lakh, there would be no tax on it.
Which are the best tax saver mutual funds 2023?
> Axis Long Term Equity Fund
> Aditya Birla SL Tax Relief ’96
>Mirae Asset Tax Saver Fund
> Nippon India Tax Saver (ELSS) Fund
> SBI Long-Term Equity Fund
> DSP Tax Saver Fund
> ICICI Pru LT Equity Fund (Tax Saving)
How to invest in tax saver mutual funds online?
Gone are the days when investing money meant going to financial institutions. Nowadays, if you have an internet-enabled smartphone, you are more than good to go. It is as easy as ordering groceries, but you only need the right app. So to make it easy for all the readers, I’ll share my personal experience here.
- Download the Bajaj Finserv Application from the Play Store/ App Store.
- Sign up by entering your details.
- On the home page, you’ll see ‘Investment Bazaar.’
- Here, go on ELSS
- Choose the plan according to your requirement