For a common man, it is much difficult to cope up the needs of money in routine life. On one side, he may have limited salary, and on the other side, he may have trouble with saving and adding to that there is also a tax burden he has to face. In such a scenario, he needs to have well-planned financial management. He needs to find the options where he can save some amount and also avoid tax liability. Looking at such requirement, one can go for the tax saver mutual fund which can help him save the amount on tax as well as earn a good return on his investment.
The tax saver fund:
For the investors who have to face tax liability, the tax saver fund can prove as the most viable option. One can check SIP in this segment, which can be a good option to save tax and invest in instalments. To find the best tax saver SIP one needs to go for a little research which must cover the fund duration, rate of return in last year and last six months, minimum lock-in period and a lot more information.
Under this option one can invest up to the amount of 150000 per annum and get the tax liability reduced to that extent under section 80 C. This is a special provision offered by the government to those investors who want to invest the amount and save tax also.
Find the right option:
The market has many companies which have their mutual fund options in this segment. To know the best tax saving mutual fund SIP one needs to check a few of them in terms of their investment and return. If one knows the technical side of the mutual fund, it is good, but if one has no knowledge, he can go for hiring an expert of the field.
The options to invest:
As far as the market of a mutual fund is concerned, one can find several options as per which he can achieve his financial goals. There are debt funds, equity funds, large caps, small and medium caps where the mutual fund companies plan to invest. Over a period, this investment can help them fetch good return and hence, they can also offer a return to the investors. Those who want to invest in a mutual fund must check the option with respect to all these facts. The area of investment of a company, the return it expects from the market; if the fund is old, one can also check its past performance and return it may have offered to the investors. Such checks and research can help one get an idea if the investment in the concerned option will be fruitful one or not.
The options in a mutual fund are open-ended and closed-ended. The open-ended funds are those where one can invest and withdraw the amount at any time while in closed-ended one can invest the amount at any time but cannot withdraw the same before a specific period.