How saving money can save you more money.

1. How Saving Money Can Save you More Money

2. We are all familiar with the phrase and concept of money making more money for us, but have you ever heard of money saving more money for you? Well, as hard as it is to believe – it is a reality. How do you ask? With the right mutual funds. There are many different kinds of mutual funds in the market and one of the most preferred methods to reduce your strain on tax. If you ever wanted to get a head start to reducing your tax component – the simplest way would be to invest in equity linked saving schemes.

3. Tax Saving Mutual Funds With tax saving mutual funds, you are able to not only save money for a brighter future but also reduce your tax liabilities. Looking at investments, you are sure of getting a large quantum if you start early in the year and also get the benefit of tax exemption. The smart investor should look at this to get better returns than investing at the penultimate month to save taxes.

4. Systematic investment plan The investments can help chalk out a regular style of saving money and that is the perfect build up for you as a person. A systematic investment plan is a quickest and smartest way to start through a smart ELSS – the key would be to keep a plan with a long tenure to get the best returns of it. When you invest in such funds you can claim savings of Rs 1.5 lakhs under the section 80 C. It is almost a benefit that is passed on for taking better control of the savings in your life.

5. Choosing the best performing ELSS If you were to calculate, there are many ELSS options in the market today and choosing the best performing is a tough nut to crack. They are transparent, high liquidity and does give you higher returns – what’s the catch? They are higher in risk as compared to an equity based fund. We may think that most investors are looking to invest here, however, only about 15% of the total fund investment comes in from ELSS. So, if you were to start a fund at the start of the financial year, you would get better returns than putting those investments at the end of each financial year.

6. Here are some of the best tax saving funds in the market and they would give you benefits that you have been missing out for too long.

7. Here are the Best tax saving funds IDFC tax advantage Direct (G) With nearly 28Cr as the assets under management, this fund is one of the best performing funds today and promises to give you healthy returns on investment. Apart from the tax amount that you save, you are also getting good profits on your hard earned money. SBI Tax Advantage Sr-2 With continuous growth on the long and short pattern, this tax saving fund does give you value for your buck. An early investment here can reap big dividends, is it a fund that has matured completely though? That’s a call you need to take. IDFC Tax Advantage ELSS – RP One of the best serving ELSS’ out there in the Indian market. It has been consistently delivering and has slowly become one of the most sought after funds in the market today. The fund has been around for a long period of time and has developed to be one of the most trusted funds in India today.

8. Moreover, these funds need not be in a single pay-out, these can be paid over a monthly payment and that ensures you are not putting in a lot of money in one go. It is the perfect investment instrument for anyone who is juggling a working life and wants to continue making strong investments as well. In fact, the tax saving benefits come to be one of the reasons that many are keen on investing in such tools each year to reduce your tax liability. At the end of the day, you are able to gain on the reduction of tax as well as the growth you get from the investment.

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