Invest in Tax Saving | Mutual Funds | SIP | ELSS
Tax Saving Mutual Funds & Bonds
Invest in tax saving funds – plays a crucial role in planning your future, where you need not pay tax for it again. Most of the tax saving mutual funds are ELSS schemes and investments in equity funds.
ELSS schemes mean when you invest in this, the lock-in for this money will be for 3 years where you cannot return your investment for this particular time period. When the time comes to withdraw, investors can see how many units have got for that particular investment and redeem them at the current NAV. The NAV is the amount you will get for each unit.
Types of ELSS
There are two types of schemes one is a dividend, where you can take some amount as SWP (Simply Withdrawal Plan) for every month, this will be deducted from your amount and extra units will be added for the remaining amount. Coming to the other scheme, only growth will be taken, there will be no dividends for this.