Top Tax Saving Mutual Funds to Invest in 2020

 Top Tax Saving Mutual Funds to Invest in 2020

Investment in equity-linked savings scheme is the new Broadway to get higher returns than other tax saving schemes such public provident funds, fixed deposits or national pension schemes for an added advantage of the least lock-in period. If you seek high return from medium term investment options, you will put your money into the ELSS funds as an ace in the hole. ELSS also termed as Mutual Funds for tax saving have some exclusive benefits over other tax saver options.

However, here is our word of wisdom to save you from diving into potential losses. You must have a detailed view on your own risk appetite, because investment in ELSS or stock markets is always a risky affair. High returns in these schemes come with high risk factors that should not be overlooked. It is important that you practice discipline and consistency in assessment of your investments to get the benefits of assured returns alongside the tax saver benefits.

Making ELSS funds (if you are investing in these schemes), a part of your annual financial management plans will help you make the best out of your money. To become proficient in the game of high risks and high returns, you should mark your financial goals clearly and think long term. It is better to have a plan keeping in mind the asset size, downside risks involved, outperformance and history of past performance of assets you are investing in.

You should unhesitatingly consider expansion of your investment horizon in ELSS funds for a period of 5 to 7 years to achieve your overall financial problems. It is not essential to rush in for withdrawing your money out as soon as the maturity period of the 3 year lock-in period crosses its mark. You can earn assured income through managing and diversification, in which tax saving mutual funds can prove to be an ideal source of income.

Here, we have mentionedour list of top mutual funds for tax saving in 2020 created in consideration of expert opinions and in-depth analysis to help you arrive at better investment decisions in these volatile times of Covid19.

  1. Motilal Oswal Long Term Equity Fund
  2. Nippon India Mutual Fund
  3. Aditya Birla Sun Life Tax Relief 96
  4. SBI Magnum Taxgain Scheme
  5. Axis Long Term Equity Fund
  6. Mirae Asset Tax Saver
  7. Invesco India Tax Saver Plan
  8. ICICI Prudential Long Term Equity Fund (Tax Saving)

The benefits of tax saving mutual funds include minimum lock-in period, no exit load as it follows the exempt-exempt-exempt format on investment, interests and maturity amount, options to invest in SIP on a monthly basis or opt for a lump sum investment, and higher returns than provident funds or fixed deposit tax saving schemes. Keeping in mind the mean rolling returns and consistency of the assets being invested in will guide you to shift your approach from a beginner investor’s attitude to aninformed one’s aptitude.

 

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