Hi Friends. You would have heard about many
types of mutual funds. There are many categories as well. Which category will best suit your
needs? If we talk about the ELSS tax saving schemes,
that will be a good category for your first mutual fund investment. What is the reason? I will talk
about 3 reasons here: Reason 1 – Tax saving. Under section 80c of the Income-tax Act,
you get a chance to save tax on Rs.1,50,000 of your income which means Rs. 1,50,000 is
exempted from your taxable income. That Rs.1,50,000 you can invest in mutual fund ELSS
scheme or 5-year tax-saving bank FD or PF or PPF or NSC etc. So when you invest in
a mutual fund ELSS category, you get the benefit of tax saving. Reason 2 – Apart from tax-saving,
It also provides us the opportunity to invest in equity markets. Indians are risk-averse
and conservative hence are hesitant of investing in equity markets. Even if they do, it’s a
short term investment. Since ELSS has a Lock-in of 3 years, it helps in both – tax saving
& wealth creation too. Reason 3 – ELSS schemes are multi-cap schemes which means it invests
the money in companies across all the sectors and market caps. You get to be a part of India’s
growth story if you invest in ELSS funds. If we talk about ELSS schemes, you can invest
Rs.1,50,000 as a lumpsum amount or through a monthly SIP route as well. You can enjoy the
benefit of the ELSS scheme with a SIP as low as Rs. 500. ELSS tax saving scheme should be
your first mutual fund investment scheme. Thank you.