Investment /Tax Savings
What are mutual funds? A Mutual Fund (MF) is formed when capital collected by various investors is invested in purchasing company shares, stocks, or bonds. Shared by thousands of investors, mutual funds investments are collectively managed by a professional fund manager to earn the highest possible returns. This is how mutual funds work, not only in India but, anywhere in the world. A Mutual fund Money pooled from various individuals (investors) Well-regulated (by SEBI) Access to large portfolios Professionally Managed Higher returns than conventional investing Allows investing in small amounts Investing in Mutual Funds is the easiest way to grow your wealth. The fund manager’s expertise is an important factor to consider while choosing the fund. All Mutual Funds are registered with the Securities Exchange and Board of India (SEBI) and hence, your investment is safe.
National Pension System (NPS) is a perfect solution for retirement planning. It provides old age income with reasonable market based returns. It is based on unique Permanent Retirement Account Number (PRAN) which is allotted to every subscriber for NPS. The NPS is largely focused on one's retirement. While up to 60% of the maturity corpus can be withdrawn as a lump sum on maturity, the balance is compulsorily annuitized, i.e., balance is used to fund the annuity (pension) after retirement. This annuity is fully taxable in the year of receipt as income from other sources. Subscribers have the option to open two types of NPS Accounts under the same Permanent Retirement Account Number (PRAN): • Tier I: Contributions done to this account are eligible for additional tax deduction benefit of up to Rs. 50,000/- under section 80CCD (1B), over and above Rs.1, 50,000/- u/s 80C. Withdrawals are restricted and subject to terms and conditions. • Tier II: Subscribers can invest an additional amount in Tier II NPS Account. Subscriber is free to withdraw his entire accrued corpus under Tier II at any point of time. In case subscriber has not contributed even the initial contribution towards Tier II a/c, it will be automatically deactivated as per process. No tax benefits are available in this account. Subscribers have the option to select allocation pattern for their investment across various asset classes. Active Choice: This option allows the subscriber the freedom to design the portfolio among 3 asset classes as below: • Equity (E): This is a 'High risk – High Return' option as the funds are invested in equity Subscriber can choose to invest up to 50% in this class • Corporate Bonds (C): Funds are invested in fixed income bearing instruments which offer medium returns • Government Securities (G): Funds are invested only in Government Securities Auto Choice- Life Cycle Fund: In case 'Active Choice' as described above is not selected, the contribution funds will be invested in a pre-defined proportion depending on the age of the subscriber. The exposure will be higher in equity at a younger age and will be moderated progressively to get a balance among high, medium and low risk investment. For example, allocation in equity till the age of 36 years is 50% in "E”, 30% in "C" and 20% in "G" asset class. After the age of 36, asset allocation starts decreasing from "E" and "C" and increases in "G" till it reaches 10% in "E" & "C" and 80% in "G" asset class.
ELSS ( Equity Linked Saving schemes)
ELSS (Equity Linked Saving schemes) ELSS funds are tax saving mutual funds, in which majority of the funds are invested in equity schemes. Invest in ELSS – Tax Saving Mutual Funds & Save Upto ₹46,800 In Taxes Trusted by over 40 lakh Indians •Save up to Rs 46,800 in taxes •Highest returns among other 80C options •Lowest lock-in of 3 years •Get Instant Investment Proof Why Invest in ELSS With ELSS mutual funds get the dual benefit of saving on taxes and higher return on investment compared to bank FD, PF, NSC and other tax saving investment options. Easy to Invest Invest in Hand-picked best performing Mutual funds Easy to track Track / monitor your investments 24/7 Easy to withdraw Withdraw anytime in 1-click with no paperwork needed Paperless Sign up, complete your KYC and invest online in 10 minutes. Bank graded security Data security is our priority and all you investments are completely secure Investment proof for HR Get your 80C investment proof instantly and submit to HR.