Tax-free mutual fund – Hot pick of investorsby Ravi Kumar Blogger Live
Everyone is so concerned about securing the future and hence give great importance to financial planning. There are investment products that help you gain good returns at the same time of giving the tax benefits as per section 80C of the income tax act. Tax saving mutual funds are one such product to select from. There are several companies to provide mutual funds in different types and plans to select from. Make use of the same in a better way to make use of the investment amount in a meaningful way for a brighter future. Here are some of the reasons that made tax saving mutual funds the hot pick of the investors.
Lowest lock-in period
Present generation looks at the investment products that bring the returns in a lower period of time. But it is found that most of the tax saving instruments come with large lock-in period ranging from around 3 to 15 years. These instruments don't allow the investor to redeem the amount or make a withdrawal of the amount except under specific conditions. On the other hand, a tax-free mutual fund comes with the lower lock-in period of three years. This is one of the important factors that made these funds so hot in the investors market.
Convenient investment plans
If you are about to retire and love to invest a good part of the retirement amount in the mutual fund, you can prefer a one-time investment plan. This makes you free from saving amount each month for investment purpose. But if you love to make the investment for the future during your salaried periods, it is better to prefer SIP, systematic investment plans. Under this tax saving investment plan, you can pay a small fixed amount every month towards your plans.
Freedom to deposit in different funds
You have to freedom to invest the funds with different fund houses instead of putting the whole amount in a single fund. You can select more than one fund as you wish to make the investment. If you found any of the funds underperforming, you can stop investing in them and can start investing in other products as you wish.
Flexible investment tenure
Mutual funds are provided with flexible tenure with return on investment varying from one to another. You can select the plan with tenure and rate of returns that better suit your investment requirements and expectations. One thing is sure that the investment market is highly competitive and hence every mutual fund provider has tailor-made investment product to meet the budget of all classes of people.
Online accounts and platforms
Now there is no need to spend time on tiring paper works. There are reputed online mutual find platforms to make you totally free from paper works. The entire process right from the collection
of KYC to execution is carried out digitally. This helps you search and compare the best tax-free mutual fund sitting at the comfort of your home or office.
Mutual funds are subjected to market risks doesn't mean that you are going to lose your hard earned money. Get professional services and make the investment with reputed companies to earn a good return on investment. Learn more at Gulaq Mutual Fund Blog
Created on Jun 26th 2019 01:45. Viewed 310 times.