Best Mutual Fund Schemes to Invest in India

Everyone wants to set their financial goals to invest in top mutual fund schemes online. But some time happen that people were not getting the proper schemes so that they might make their investment wealthy. Some fraud, financial advisors misguide such investors who don’t have proper knowledge and recommend investing in worst schemes. Filter and avoid all advisors who suggest worst schemes. Find such platform which has best mutual fund schemes to invest. Set an initial amount to cut down from your salary and invest for long time so that you might gain maximum benefits. A mutual fund is the only way that helps to achieve financial goals after a decade. So if you are not aware from mutual funds, instant hire advisors and know about all schemes with ease.

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Invest in ELSS to Save Income Tax Early

Tax planning requires awareness of available options and timely planning. Different investors need different approaches. But all must know about the best tax-saving mutual fund schemes.

Tax saving mutual fund schemes or Equity Linked Savings Schemes are undoubtedly the best tax-saving option available under Section 80C.

It also has a low lock in period, ELSS comes with a mandatory lock-in period of three years.

You should start thinking of investing in ELSS to save income tax early in the financial year. Best approach is to start investing right away in a regular manner. It not only imparts the financial discipline, but this method also offers taxpayers enough time to do proper research and choose the schemes that are most suitable for your needs.

To invest in a regular basis, you should start a Systematic Investment Plan (SIP) in an ELSS or tax-saving mutual fund scheme of your choice. When you choose a one year SIP with monthly investment, the money will be invested automatically every month in a tax-saving scheme for 12 months. You can invest for any length of duration in open ended Top mutual fund scheme.

These ELSS schemes are equity based schemes investing in stocks so they are inherently more riskier then debt mutual funds, You should invest in ELSS as best tax saving investments only if you have a risk-appetite to understand the volatility in the stock market.

There is a mandatory lock-in period of three years in these schemes but for better results you should invest in them with an investment horizon of four to six years.

If you opt for government-backed tax-saving options, most of them are fixed income instruments offering very modest returns. But ELSS funds have the potential to offer superior returns because they invest in stocks. The best tax saving schemes category has returned 22 per cent in one year, 14.5 per cent in three years and 18.5 per cent in last 5 years

 

Why you Should Choose the Best SIP Plan for 5 years

People earn and spend to complete their basic requirement, but all in these There are some people who save money. They are worried about future of their child’s and own retirement. So that people become rich after completion of their job. People who are not planning to invest and spend their hard earned money that situation they are making their future valueless. If your age under between 25 to 35 then you need to consider the Best SIP Plan for 5 years to create wealth. In this competitive world everyone must aware about mutual funds investment. Mutual Funds give the ways to achieve financial goals after a  long time. Find the Top Plans to go through our web portal www.rrfinance.in and make your investment hassle free.

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SIP for Investing in Current Scenario

Whenever markets reach extreme points whether it is a lifetime high or a new bottom, investors always panic and are scared to invest. If markets are very high, they feel it may not sustain at such high levels, if markets are very low, they feel it is a downtrend and may continue! So, in both extremes they are scared to enter. If they have already invested, then again, they will be panicked for the same reasons. What should a smart investor do to avoid such indecisive moments?

The best approach is to stop worrying about markets ups and downs in the short term and invest for the long term. It is a well known fact that over long periods markets always give positive returns; during any ten year rolling period, markets have never given any negative returns and overall equities have generated 14% CAGR in the long term.

The most effective approach to overcome the fluctuations in markets is to invest regularly. When markets are at a low, the prices are down and you get more units for the same amount, this effectively reduces your average cost of units and when markets go up, you are able to make profit. Using SIP (Systematic Investment Plan), you are able to invest in mutual funds online without any hassles, your money is automatically deducted from your account every month and units are purchased in your account.

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You can invest in all the best mutual fund schemes using SIP online and this method makes you a disciplined investor.

Another major advantage of investing regularly and for long term is that you gain from the benefit of compounding interest, the longer your money remain invest the more return you are able to generate.

These are the most crucial advantages of using SIP because of which lakhs of smart investors are now using this online approach to invest in the best mutual fund schemes.

Identify your financial goals with Systematic Investment Plan

It is simple but powerful concept of identifying the financial goals. Once you have identified your goals, you can fulfill your entire requirement after retirement. Systematic investment plan is the disciplined way of investing, where you can invest small sums of amount on the monthly or quarterly basis. If you start investing in SIP then easily can identify goals, reason is that SIP gives returns on the basis of the power of compounding systematically. Your small investment can help to achieve your big dreams like a child’s education, owning a car, house or celebrating holidays after your retirement. SIP is the strongest way of investment that gives higher returns.

Basic key points to identifying financial goals

 

  • Cut down a small amount from your salary to invest in Best SIP Schemes.
  •  Set time duration for investment, according to your need after retirement.
  • Invest continuously until you achieved your goals.
  • As your budget grows, get additional purchase and increase investment amount.

 

Doing these steps can easily help you to complete financial goals easily. So start investing!

ELSS is a Best option for Tax Saving Online

ELSS stand for Equity Linked Saving Schemes and it is diversified equity schemes offered by mutual funds in India. ELSS offers tax benefits under section 80c. ELSS can be invested both lump-sum and systematic investment plan simultaneously. Now in these days tax planning is a tedious exercise for all tax payers. They wondering for best for tax saving options, but not getting the expert advisor’s they invest in appropriate place. At last investors can’t save their taxes much. Need to consider about Tax saving funds (ELSS), this is the best options for tax saving online with ease. Investing in ELSS can save tax and create wealth with minimum lock-in periods. ELSS fund provides the opportunity for hassle free investment means anyone can invest online from anywhere anytime. No needs to wait for financial year start investing now!

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Tax Saving Fixed Deposits

As per income tax laws, if you invest in a tax saving fixed deposit scheme, you can claim up to Rs 1.5 lakh as a deduction from your income. This amount is to be deducted from gross total income to arrive at the taxable income. This deduction is allowed under Section 80C of the Income Tax Act.

Key features of tax saving fixed deposits –

  1. Only individuals and HUF can use avail this benefit
  2. There is a minimum FD amount that varies from bank to bank
  3. Loan against FD is not allowed
  4. Minimum lock in period for these fixed deposits is five years
  5. An investor can invest in these fixed deposits through any public or private sector banks but not through cooperative or rural banks
  6. If you invest in five year post office deposits, then that also is eligible for tax deductions under section 80C
  7. Post office fixed deposits can be transferred from one post office to any other post office
  8. TDS will be deducted on interest earned from these deposits as per the tax slab of the investor. The interest/ deposit can be paid monthly or quarterly. Investor can also reinvest the interest
  9. Investor can use nominee facility in these FDs
  10. For tax saving fixed deposits also there is a higher interest rate facility available for senior citizens like the normal FDs
  11. It does not have auto renewal facility

Why Wait till March Start Your Tax Saving Now?

There is no need to wait till March end for planning your tax saving investments. Financial decisions made in a hurry, almost always goes wrong. During year end, you are always under pressure to take quick decisions, and you may get influenced by the pitch of a salesman. You may also want to hurry up to show a receipt to your office accountant so that he does not deduct TDS.

A wrong decision may block your funds for a very long time as all tax saving investments have long lock-in periods. You may think it convenient to put your funds in PPF but then you will end up with a fifteen-year lock-in, compared to just three years for an ELSS fund.

So plan now for your tax savings. You will not only make a better choice, but will also be able to do it stress-free. You will be able to plan for better returns with lower lock-in periods. Pay especial emphasis to using SIP in ELSS funds instead of hurriedly investing a lump sum in March.

ELSS funds or Equity Linked Savings Scheme of Mutual Funds have some really attractive advantageous for tax saving.

One benefit is that ELSS funds are unique in being the tax-saving investment that brings the maximum gains of equity returns. Although ULIPs and the National Pension System (NPS) also give equity-linked returns but ULIPs have long lock-in – at least ten years and high costs and poor transparency. The NPS is a not a savings investment option, it is a retirement solution having only partial exposure to equity,  has a very long lock-in period, and returns from NPS are taxable.

The investments made in ELSS schemes are eligible for income tax deduction U/S 80C

 Why Invest in Tax Saving Funds?

1) Higher Earning Potential : Since ELSS mutual funds invests in equity related instruments, these schemes would help you to grow your money over a period of time. 

2) Save Tax u/s 80C up to Rs 1.5 Lakh: By investment in ELSS mutual funds, you are eligible for tax exemption up to Rs 1.5 Lakh u/s 80C. 

3)Shortest Lock-in period of 3 years: ELSS mutual funds come with the shortest lock-in period of 3 years with comparison to other tax saving investments. 

4) Tax Free Returns : None of the returns from best tax saving investment options other than PPF are tax free. All the tax saving schemes return are taxable based on individual tax slab. However, interest in Public Provident Fund is tax free, but that comes with a 15 year lock-in period .

How ELSS Scores over other Tax Saving Options

PPF NSC Fixed Deposit ULIPs ELSS
Lock-in period (Years) 15 5/10 5 5 3
Minimum Investment Rs. 1000 Rs. 1000 Rs. 1000 Rs. 1000 Rs. 1000
Historical Returns @ 8.7% 8.5% or 8.8% @ 7.0% 0-6% 14% -16%
Tax on gains Tax Free Tax on interest earned Tax on interest earned Maturity/claims proceed tax free Dividends & Capital gains are tax free

Things to keep in Mind while Investing Best SIP Schemes

It’s very difficult to choose the mutual fund schemes for investment. It’s easy to choose for those who already have good knowledge about all mutual fund schemes. If you completely new to mutual fund investment the best recommended schemes is SIP. SIP is the best schemes for new investors because it has good historical returns records. Those who invested their idle money only Rs. 1000/- per month for long term, now they have good returns. Every new investor needs to follow some steps before investing in SIP Schemes.

Decide first you must have regular income

Plan and Set Investment amount for long term

Choose the number of Years to invest in best SIP Schemes

Do not redeem your investment amount before completion of one year otherwise you will have to pay 1% exit load.

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I invested in SIP, Now it’s your Turn

In a few months ago, I started a private job in very less salary. I was unable to save money due to my lowest salary. A few days later I got a call from a financial company, advisor suggest me about Best SIP Schemes to Invest Online. In this scheme investment amounts are low means anyone we can start with minimum amount. SIP is a simple and easier way to create wealth and gives compounding interest to gain higher returns. The investment process is very simple and convenient; to start, we need to create an online account as this process complete easily can start an investment. I understand this scheme very well then decided to invest in Systematic investment plan to complete my financial goals after retirement. My budget is not too much, but still can start a SIP with Rs. 1000/- per month, that budget is affordable for me. In Simple words investment today can rich tomorrow. Now it’s your turn….

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