According to the Income Tax Act of India, Section 80C, there are certain investment destinations that permit the investors to lessen their duty obligation or to avail the income deduction. One of the most effective investment counters that offer tax redeem policies is the ELSS mutual fund. It is even believed to be one of the safe investments with high returns in India.
Investment in ELSS mutual fund can be made whenever amid the budgetary year to pick up this derivation. However, to evaluate your taxation rate, employers may request you to present your tax planning a few months before the monetary year-end. It will not be wrong to assess that this is only the peak hour when the investors rush to make their fruitful investments. Investors prefer to make their effective investments in ELSS funds amid the month of February and March. However, two major issues are related to this approach.
1. First, the problem of selecting the wrong product or portfolio with an aim to save taxes. Several investing sectors are available in India that allows you to save your income tax. But not every sector is worthy. As a consequence, there is a high tendency of purchasing the wrong item that doesn't actually serve your need or choosing an item that fails to provide you with high returns. No doubt, ELSS mutual funds are the best amongst all such investment categories that not just save taxes but also offer a good return.
2. Secondly, regardless of whether you have made any mistake in choosing the fund or not, every mutual fund investment plan is associated with risks. This you can't disagree. The greater is the return, the higher is the risk profile. This what causes the second major issue to the investors while approaching for the tax-saving investments.
ELSS mutual funds offer both lump sum and SIP investment strategy, thus allowing both small and large investors to invest in a single investment plan. If an investor is likely to have a huge fund and want to invest at once, he or she can definitely make a lump sum investment. But that doesn't mean the small fund investors are devoid of making any such investment and two-fold their wealth.
Further, setting up a SIP investment plan prevents you from the last minute rush while likewise profiting from you. It lessens a load of having enough money for investment, thus allowing them to make a safe investment with high returns in India.
Multiple financial advisors like Wealthclock Advisors have evolved in India with an aim to guide their clients in making their financial investments. Being an investor you may even crawl these websites to know more about different tax-saving strategies in India and such tax saving investment plans.