Top Tax Savings Tips with SIP in 2018

Most of the tax savings are done at the end of financial year in India close to March making way for their adjustment in the final statement accordingly. On the other hand the most suitable way is to start saving them from the beginning of the year itself from April only. Using right strategies on Mutual funds SIP one can do saving as well take care of taxes respectively. These monthly Systematic investments will bring the discipline in a more sophisticated way to bring more relief towards approaching your life goals in the future accordingly. Here we are going to narrow the use of mutual funds that are characterized for saving you from taxes with focus on ELSS and tax saving mutual funds.

Equity-linked saving schemes (ELSS)

These are government approved mutual funds investment for tax savings and one can claim tax benefits under section 80C of the Income Tax. In these ELSS you can go for monthly  

 systematic investment plan (SIP) with simple filling of required form and KYC details which will start your monthly investment in this funds simultaneously. Lump sum investment are generally not recommended by professionals in ELSS as rupee cost averaging allows better flexibility for longer terms wealth creation. These ELSS funds are used by people all over the India for making rich gains in the market for e.g. Axis Long Term Equity Fund, IDFC Tax Advantage Fund, Reliance Tax Saver Fund, ICICI Prudential Tax Plan, and Franklin India Tax shield Fund are some of the best funds in Indian markets.

Another option is to user specific term plan with your ELSS schemes to that investment goes along with savings too. Public Provident Fund (PPF) accounts are also having long term lock on the money which can be used for these purposes as well.

SIP with Debt Funds

Some investors also go for SIP in shorter terms for year and more then taking out the money annually using them for paying their premium respectively. These SIPs although bit risky allows having benefits of both in terms of SIP investment and tax saving too. This method gives you added advantage of extra money in terms of putting them under FD in banks.

At Wealthcare India we offer absolute information and guidance for making smart choices for investing in markets with mutual funds, retirement funds, insurance, fixed deposits and many more. Our Certified professionals are highly experienced for generating large term growth of your investment using their skills in sophisticated way. These Mutual funds SIP indulges discipline investment behavior in your life for focusing on achieving goals and getting more balanced in their life subsequently. 

Source:

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