Best tax saving scheme

One of the best mutual taxes saving scheme is the Equity Linked Saving Scheme. A specific example is the government of India, which offers s tax deduction of up to Rs 1,000,000 when an individual invests in ELSS. The following are some of the main reasons why Ells is considered the best option for a tax saving scheme

This fund can provide a better return when compared to the rest of assets classes

If an investor makes a loss, they can easily adjust their capital gains on the profits

Through this fund, you get a professional to manage your fund

This scheme offers a wheel rounded diversified assets allocation

The potential of no tax on a long term gain is quite large

When this fund is compared to PPF with 15 years lock in you will only need a 3 years lock in this funds.

The above funds include some of the top rated mutual funds scheme, which are very rewarding whenever a person invests in them. Whenever investing in these schemes, it is only appropriate to closely pay attention to some essential feature/characteristics, which resulted in a hyped return. The following are some of these.

Return

It is quite important to keenly note the return rates of the fund over different time scales

Age of the fund

The age of the fund is a full description of the experience the fund has gained over the period. By considering the age of the fund, you will be in a position of evaluating its performance over certain periods. Funds, which have a good track record, are usually preferred.

Risk Vs Return

Funds, which have goods rate of return, are in most instances associated with high risk. It is quite appropriate to keenly consider the risk-return trade off. There should be a balance between the two. Better if the return is higher than the risk involved though this is rarely the case.

Expense ratio

The expense ratio of the fund should be lower than the average for the category.

Rating

It is also very appropriate to consider the rating if the fund. Ratings are usually a reflection of short-term performance of the funds.

One of the best ELSS FUND is the Axis Long Term Fund. This fund is associated with high alpha and a low fund risk grade. This fund has been performing very well of the last five years. Within these five years, the SIP return has been around 35%. This is one of the highest in this category.

With a keen consideration of these, the investor can be sure that he/she will earn a favorable rate of return from his/her investment.