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Best Tax Saving Instruments in India

Hard-working professionals and businessmen are always on the lookout for the best tax saving investments in order to derive maximum benefits from their investments. Investmentz.com brings you the opportunity to invest in top tax saving mutual funds and other tax saving investment options in India! Investing in tax saving schemes not just reduces your tax liability but also help you meet various personal financial goals in your life. Learn how to save Income Tax in India as well as carry out your retirement planning by investing in the following tax-saving instruments.

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TAX SAVING MUTUAL FUNDS

Save Tax in India up to a maximum of ₹ 46,350* each year under Section 80C of the Income Tax Act by investing ₹ 1,50,000(max) in Top Tax Saving Mutual Funds (ELSS) Equity Linked Savings Scheme with the lock-in period of just 3 years.

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Tax Benefit u/s 80C
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INVEST FOR RETIREMENT – NATIONAL PENSION SYSTEM

Secure your retirement and save additional tax upto a maximum of Rs.50,000^ under section 80CCD(1B) through tax benefits on NPS by investing in the government sponsored National Pension Scheme.

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Tax Benefit u/s 80CCD

ELSS – Tax saving mutual funds

It’s fast approaching that time of the year when you will start scouting for the best tax saving options in India. Thus, this is one of the best times to choose ELSS as a tax savings option. Most of the time, we tend to ignore this option without realizing its actual earnings potential as an investment asset class. A diversified tax saving mutual fund, Equity Linked Savings Scheme (ELSS) is one where a major chunk of the corpus is invested into the equity markets.

What are ELSS tax saving funds?

An investment asset class with the dual benefit of tax savings and investment, Equity Linked Savings Scheme (ELSS) is gaining in popularity these days. As an equity-linked savings scheme, ELSS provides investors with the opportunity to grow their corpus while saving on taxes.

What are the ways in which you can make an ELSS investment?

ELSS investment can be made either in lump-sum or through the SIP route. There is a lock-in period of 3 years in ELSS tax savings investment. If you invest through the SIP route, please note that each monthly SIP investment will have a 3-year lock-in period, which commences from the date of making the monthly SIP investment

What are the ELSS tax saving investment options in India?

In India, you can invest in ELSS funds by choosing either the growth or the dividend option. When you invest in ELSS funds in India using the growth option, you get a lump-sum amount after the completion of the lock-in period. However, in the dividend option, you will get a dividend each time the fund announces a dividend, even during the lock-in period.

What are the benefits of making ELSS tax saving investments in India?

ELSS tax saving investments in India has the following benefits:

  • Enjoy the dual benefit of tax savings plus investment
  • Benefit from a much lower lock-in period compared with other tax savings investment asset classes
  • Higher returns due to equity exposure element, plus the returns are tax-free upto 1 lakh
  • If you’ve not invested into the equity markets, ELSS is a good way to make a beginning

Can you invest in ELSS online?

Yes, indeed! You can easily invest in ELSS online through your online trading account. We will generally provide you with a list of tax saver fund options which you can choose from. All you need to do is to open a free mutual fund account with us, select the fund of your choice and make payment online.

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Fees and other Financial Terms and Conditions for Investing in Stock Baskets

  • The Client agrees to pay the fees calculated in the manner and on the rates as provided in the Schedule I.
  • The Basket profits or returns would include any dividends, benefits received out of corporate actions.
  • All the costs, fees, charges as per schedule I and expenses of whatsoever nature incurred by us in connection with the acquisition, holding, sale and transfer, in respect of the dematerialised state charges of the Depository Participant, in respect of Securities shall be paid by the Client.
  • A new separate DP account is required for all investors for the basket investments.
  • For new and existing clients, the Demat account will be used only for equity basket and Investor is free to open separate Demat account for self managed investment.
  • During the course of investment, we will invest as close as possible to the basket amount. Some small surplus to be left due to rounding off that amount will be managed /invest/return to the investor as suitable.
  • The stocks in the basket will be as per the discretion of the ACMIIL. These stocks would be reviewed from time to time and the rebalancing, (if any), of the stocks in the basket would be at the discretion of ACMIIL.
  • You are free to exit basket wise or exit from all basket at any point of time. You are not allowed to selectively exit from any stock or add any stock to the basket.
  • In case of a bank mandate, we will need 20% more mandate of the basket amount as the stock price will fluctuate time to time. The amount taken from bank would be actual value of Basket.
  • The Client agrees that in the event of a dispute, the Claims, if any, by the Client cannot exceed the fees paid by the Client for the year for advisory services in Rupee terms.
  • The client agrees that in case of any dispute, the claim and/or disputes will be referred to arbitration as per the Rules, Bye-laws and Regulations of the Stock Exchange where the trade is executed and the circulars/notices issued there under as may be in force from time to time.
  • As a SEBI registered stock broker, we are permitted to act as an adviser. This product is part of our advisory activity.

Schedule I

Fees Structure
Nature of FeesFees
Basket FeesINR 300 per basket + GST (Charged upfront)
Advisory Fees (Second year onwards)2% p.a+ GST (Charged upfront on Basket Value)
Approx Transaction Charges0.13%
Note: In Basket fees and Management Fees, GST will be recovered at the applicable rate.
Transaction charges includes Brokerage, STT, Stock Exchange charges, Stamp duty, SEBI Charges & GST

Fees Structure Example:

Suppose Client A has bought 1 basket for 36 months so he will pay INR 300 per basket as Basket fees for 36 months and from 13th month onwards he will pay Advisory fees for 1st basket as one year ends for the basket. So, after completion of one year the client A has to pay the Basket fees (13th month fresh basket) as well advisory fees (1st basket upfront Advisory fees for second year).

Transaction Charges Includes
HeadsRate
STT (Central Govt)0.1% on Transaction Value
Transaction Charges (Stock Exchange)0.0034% on Transaction Value
Stamp Duty & SEBI Charges0.011% on Transaction Value
GST18% on Transaction Charges.
  • I have understood that Investment in securities market is subject to market risk, read all the related documents carefully before investing. Past performance is not indicative of future performance and future results. The recommendations made by ACMIIL could be those that are based on its own research or on the advice of a SEBI registered Investment Adviser.
  • I have understood the equity basket fees terms and other financial conditions and the clarifications required by me. I understand that the investment in Equity basket is subject to risk associated with equity investments. I have understood the investment process and other aspects of the product.
  • I hereby agree to participate.

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