Go for the income tax saving with the help of SIP

 A Mutual fund is considered as a good option for small investors. The mutual fund companies offer different schemes with different vision and benefits to investors. One can invest as ,  as 500 rupees a month in this option. Here, one can see two options available for investment. One can go for any of these options as per his choice.

What is SlP?

It is a wonderful option that can help one to save for his future and get a good return on the invested amount. The most important thing here is the system of mutual fund investment is completely transparent. With the help of statement of a folio, one can know the situation of his fund.

Mutual fund

There is a beautiful thing about Mutual Fund for those who have to pay the income tax due to their high salary. If one goes for sip tax saver funds, he can save income tax up to rupees 150000 yearly. Another important thing is one can invest this amount in a single go or in instalment. The investment in instalment is called a systematic investment plan. There is a provision under section 80c of the Income Tax Act where one can save this amount.

How to find the right tax saving Mutual Funds?

Well, in the market there are thousands of mutual fund companies which offer various mutual funds which different options in ELSS also. hence one needs to find   the   best tax saver sip first.    One needs to check all such options before going to invest in any of the  mutual fund one, can take the help of an investment consultant. An investment consultant is a person who knows the funds in-depth and can guide the investor rightly.

The modes of investment:

With the change of time, the investment companies have come up with various options through which they can accept the amount of investment from the investors. Presently one can go for an online investment option, which is easy, safe and fast. There is also a traditional option of offline investment available with all the companies. In the tax saving mutual funds, one needs to remember that it is a closed-ended option; hence, one cannot withdraw the amount as and when required. One has to keep the amount invested for a certain number of years as per the requirement of concerned fund. Many a time people wonder why to invest in tax saving funds.

Here one must note that due to such fund, one can save tax and earn a handsome return on his invested amount which he can withdraw after certain years. Hence this investment option can help one in the present as well as future. One can save tax, save the amount and also get a good return in future. The experts in this field always recommend that one needs to keep the amount for the long term to have the desired benefits. one who wants short term gain this is not the option right for him.

When one invests in this option, he gets a statement from the mutual fund company where all the details office investment and present valuation of the same are mentioned. This can help one to plan his future saving and increase or to reduce investment in the current option

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