4 reasons why you should invest in tax saving mutual fund SIPs
4 reasons why you should invest in tax saving mutual fund SIP One should always plan their tax related investments in advance and invest through SIP route in ELSS to get the benefit of rupee cost averaging. By investing in ELSS mutual funds, one is eligible for tax deduction up to Rs. 1,50,000 u/s Section 80C of Income Tax Act. If you invest Rs. 1,50,000 in ELSS, you will save Rs. 45,000 (30% on top tax bracket). So the amount that you plan to invest in ELSS can be deducted from your income before calculating taxes. This is subject to an overall cap of Rs. 1,50,000 on the investment amount along with other tax saving instruments. Start investment early Many tax-payers normally tend to start investing in ELSS funds only towards the end of the financial year, when the time to submit investment proof is upon them. This is a bad investment and tax-plan...