Which mutual fund is best for tax exemption?
The table below shows the top-performing ELSS mutual funds based on the past five year returns:
| Mutual fund | 5 Yr. Returns | |
|---|---|---|
| SBI Long Term Advantage Fund Series IV Regular Plan Growth | — | Invest Now |
| BOI AXA Tax Advantage Fund Regular Growth | 20.95\% | Invest Now |
| BOI AXA Midcap Tax Fund Series 1 Direct Growth | — | Invest Now |
Which fund is safest investment?
U.S. government bills, notes, and bonds, also known as Treasuries, are considered the safest investments in the world and are backed by the government.
Which is better equity or mutual funds?
Whether you wish to invest in mutual funds or equity shares will depend upon your knowledge of the market….Mutual Funds or Equity – Which is a Better Option for you?
| Mutual Fund | Equity | |
|---|---|---|
| Risk | Susceptible to changes in the market, fairly risky | No risk involved as investors already know how much they can expect |
Which is better mutual funds or ELSS?
You cannot compare an ELSS with a mutual fund. An ELSS is also a mutual fund that offers tax deductions of up to Rs 1,50,000 a year under Section 80C of the Income Tax Act, 1961. The only difference between an ELSS and other mutual funds is that the later doesn’t offer tax benefits.
Which fund has highest risk?
List of High Risk Mutual Funds in India
| Fund Name | Category | Risk |
|---|---|---|
| ICICI Prudential Credit Risk Fund | Debt | High |
| Sundaram Equity Hybrid Fund | Hybrid | High |
| Aditya Birla Sun Life Balanced Advantage Fund | Hybrid | High |
| ICICI Prudential Balanced Advantage Fund | Hybrid | High |
Are equity funds safe?
If you’re concerned that mutual funds are a type of dodgy investment, rest assured that they’re completely safe. No mutual fund house can steal your money because it is regulated and supervised by the SEBI (i.e. Securities and Exchange Board of India) and the AMFI (Association of Mutual Funds in India).
What is the difference between ELSs and PPF?
ELSS (Equity Linked Savings Scheme) and public provident fund PPF, both help you save taxes, but apart from that, they differ on many parameters. ELSS investment relies on equity and has higher volatility compared to PPF which is a debt instrument with negligible volatility.
What is the difference between equity mutual funds and ELSS funds?
The Equity mutual funds, on the other hand, are known to provide slightly higher returns than ELSS funds. But, remember with equity funds, there is also high risk. ELSS funds have a lock-in period of three years. Whereas, the equity mutual funds, have no lock-in period.
What is equequity-linked savings scheme (ELSS)?
Equity-linked savings scheme is an open-ended Equity Mutual Fund and also one of the most productive tax-saving options wherein you can start investing from as low as Rs 500. ELSS comes with a mandatory lock-in period of 3 years from the date of investment.
Should you invest in ELSS mutual funds to save tax?
As mentioned above, generally, ELSS Mutual funds tend to offer better returns than most of the equity funds. Therefore, even the investors who do not want to save tax can invest in ELSS Mutual Funds to create wealth over a long run.