Unlocking Financial Benefits: Top 5 Tax Saver Mutual Funds for Savvy Investors

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Investing in mutual funds opens a world of opportunities for long-term growth and financial prosperity. These versatile investment vehicles offer a wide array of options, from equity funds that harness the potential of the stock market to debt funds that prioritize stability. By diversifying your portfolio across various asset classes, you can effectively manage risks while maximizing returns. Whether you’re a seasoned investor or just beginning your financial journey, mutual funds present an excellent gateway to wealth creation and securing your financial future. In this blog, we will explore the intricacies of mutual funds, delve into different investment strategies, and uncover the secrets of optimizing returns through systematic investment plans (SIPs). So, buckle up as we navigate through the dynamic world of mutual funds, where market volatility meets calculated growth, and your financial goals become a tangible reality.

Table of Contents

Tax-Saver Mutual Funds and PPF Interest Rate

For savvy investors in India, tax-saving mutual funds have emerged as a smart and efficient way to grow wealth while enjoying tax benefits. One such traditional and popular tax-saving investment option is the Public Provident Fund (PPF). The PPF interest rate, which is set and revised by the government, currently stands at [current rate]% per annum. With its government-backed safety and tax-free returns, PPF remains a preferred choice for risk-averse investors seeking stable long-term growth. However, for those seeking potentially higher returns and more diverse investment options, exploring top-performing tax-saver mutual funds can be a rewarding choice.

Best Mutual Funds to Invest in 2023 and IDCW in Mutual Funds

As we step into 2023, the Indian mutual fund market continues to present a plethora of investment opportunities. Investors looking for consistent income may be interested in mutual funds with an Income Distribution and Capital Withdrawal (IDCW) option. IDCW allows investors to receive regular payouts, making it suitable for those seeking regular income during their investment journey. Many of the best mutual funds to invest in 2023 come equipped with IDCW, making them attractive for both seasoned and new investors alike. It’s crucial to conduct thorough research and consult with financial advisors to identify the funds that align with individual risk appetites and financial goals.

NPS Calculator, Expense Ratio in Mutual Funds, and FD Calculator

While tax-saving mutual funds and PPF provide tax benefits, the National Pension System (NPS) is another tax-efficient investment avenue. Savvy investors can use an NPS calculator to determine their contributions and estimate the corpus they can accumulate at retirement. Additionally, when investing in mutual funds, it’s essential to consider the expense ratio, which impacts overall returns. Opting for funds with lower expense ratios can enhance the compounding effect over time. On the other hand, for those seeking guaranteed returns, a Fixed Deposit (FD) calculator can assist in calculating the maturity amount based on the principal amount, interest rate, and tenure.

Convenience plays a vital role in investment decisions. Investors seeking to invest in SBI mutual funds may explore the option of locating an SBI Mutual Fund office near them for personalized assistance and seamless transactions. Similarly, Bajaj Finserv Mutual Fund offers a range of investment options, and investors can access their investment portfolio and carry out transactions through the user-friendly IDFC Mutual Fund login portal. With comprehensive support and easy accessibility, investors can confidently navigate the mutual fund landscape and make informed investment choices. As parents’ day approaches in 2023, gifting mutual funds could be a thoughtful way to secure their financial future and express love and care for their well-being.

Mutual Funds To Invest
Unlocking the Power of Mutual Funds for Your Financial Future

Top 5 Tax Saver Mutual Funds

1. Quant Tax Plan – Growth

  • The Quant Tax Plan was launched on 1 April 2000.
  • Quant Tax Plan is a tax saver ELSS fund, which comes under section 80C.
  • The equity type of Quant Tax Plan is ELSS.
  • Quant Tax Plan is a tax saver growth plan from Quant mutual fund.

what is the current fund size, current NAV and expense ratio of Quant Tax Plan – Growth?

The Current Fund Size₹ 3,733.49 cr
The Current NAV₹ 248.91
The Current Expenses ratio2.32%
current fund size, current NAV and expense ratio of Quant Tax Plan – Growth

what is the percentage of returns that Quant Tax Plan – Growth has given in the last years?

Years Average Return rate of Quant Tax Plan – Growth
 Last 3 Years 41.86%
  Last 5 Years 22.46%
 Since launch to  till14.84%
percentage of returns that Quant Tax Plan – Growth

What is the effect of tax on Quant Tax Plan- growth?

  • Short-Term Capital Gains Tax – STCG is not applicable on ELSS schemes as they have a lock-in period of 3 years,
  • Section 80C is applicable under IT Act 1961 on ELSS schemes hence tax deduction can be made in ELSS schemes.
  • After completion of 3 years, if the profit exceeds 1 lakh, it will be taxed at the rate of 10% (Long Term Capital Gains Tax – LTCG).
  • The dividend received from this fund is added to the income of the investor and taxed as per his respective tax slab.
  • TDS of 10% is deducted if dividend received in a financial year exceeds Rs 5,000

2. Bandhan Tax Advantage (ELSS) Fund

What is Bandhan Tax Advantage Fund (ELSS) Fund?

  • Bandhan Tax Advantage (ELSS) Fund was launched on December 26, 2008.
  • Bandhan Tax Advantage (ELSS) Fund is a tax saver ELSS fund, which comes under section 80C.
  • The equity type of Bandhan Tax Advantage (ELSS) Fund is ELSS.

what is the current fund  size, current NAV and expense ratio of Bandhan Tax Advantage (ELSS) Fund?

The Current Fund Size₹4,563.99 cr
The Current NAV ₹109.54
The Current Expenses ratio1.83%
current fund  size, current NAV and expense ratio of Bandhan Tax Advantage (ELSS) Fund

what is the percentage of returns that Bandhan Tax Advantage Fund (ELSS) Fund has given over the years?

YearsAverage returns rate of Bandhan Tax Advantage Fund
 Last 3 Years34.56%
 Last 5 Year 13.77%
Since launch to till17.98%
percentage of returns on Bandhan Tax Advantage Fund (ELSS) Fund

what is the impact of tax on Bandhan Tax Advantage (ELSS) Fund?

  • Short-Term Capital Gains Tax – STCG is not applicable on ELSS schemes as they have a lock-in period of 3 years.
  • Section 80C is applicable under IT Act 1961 on ELSS schemes hence tax deduction can be made in ELSS schemes.
  • After completion of 3 years, if the profit exceeds 1 lakh, it will be taxed at the rate of 10% (Long Term Capital Gains Tax – LTCG).
  • The dividend received from this fund is added to the income of the investor and taxed as per his respective tax slab.
  • TDS of 10% is deducted if dividend received in a financial year exceeds Rs 5,000

3. HDFC Tax Saver

What is HDFC Tax Saver?

  • Quant Tax Plan was launched on 31 March 1996.
  • HDFC Tax Saver is a tax saver ELSS fund, which comes under section 80C.
  • The equity type of Quant Tax Plan is ELSS.

what is the current fund size, current NAV and expense ratio of HDFC Tax Saver?

The Current Fund Size ₹10,434.63 cr
 The Current NAV₹870.98
 The current Expenses ratio1.75%
current fund size, current NAV and expense ratio of HDFC Tax Saver

what percentage of returns HDFC Tax Saver has given in the last years?

YearsAverage Return rate of  HDFC Tax Saver
 Last 3 years 28.88%
 Last 5 years 11.42%
 Since launch to till 23.09%
percentage of returns on HDFC Tax Saver

what is the effect of tax on HDFC Tax Saver?

  • Short-Term Capital Gains Tax – STCG is not applicable on ELSS schemes as they have a lock-in period of 3 years.
  • Section 80C is applicable under IT Act 1961 on ELSS schemes hence tax deduction can be made in ELSS schemes.
  • After completion of 3 years, if the profit exceeds 1 lakh, it will be taxed at the rate of 10% (Long Term Capital Gains Tax – LTCG).
  • The dividend received from this fund is added to the income of the investor and taxed as per his respective tax slab.
  • TDS of 10% is deducted if dividend received in a financial year exceeds Rs 5,000

also read: Best SIP Plans – Top SIP Mutual Funds To Invest in 2023

4. SBI Long Term Equity Fund

 What is SBI long term equity fund?

  • SBI Long Term Equity Fund was launched on 7th May 2007.
  • SBI long term equity fund is a tax saver ELSS fund, which comes under section 80C.
  • The equity type of SBI Long Term Equity Fund is ELSS.

what is the current fund size, current NAV and expense ratio of SBI long term equity fund?

The Current Fund Size₹13,537.65 cr
The  Current NAV ₹261.11
The Current expenses ratio 1.81%
current fund size, current NAV and expense ratio of SBI long term equity fund

what is the percentage of returns that SBI long term equity fund has given in the last years?

YearsAverage returns rate of SBI long term equity fund
 Last 3 years 28.82%
 Last 5 years 13.37%
 Since launch to till 16.21%
percentage of returns on SBI long term equity fund

what is the impact of tax on SBI long term equity fund?

  • Short-Term Capital Gains Tax – STCG is not applicable on ELSS schemes as they have a lock-in period of 3 years.
  • Section 80C is applicable under IT Act 1961 on ELSS schemes hence tax deduction can be made in ELSS schemes.
  • After completion of 3 years, if the profit exceeds 1 lakh, it will be taxed at the rate of 10% (Long Term Capital Gains Tax – LTCG).
  • The dividend received from this fund is added to the income of the investor and taxed as per his respective tax slab.
  • TDS of 10% is deducted if dividend received in a financial year exceeds Rs 5,000

5. PGIM India Long Term Equity

 What is PGIM India Long Term Equity?

  • PGIM India Long Term Equity was launched on December 11, 2015.
  • PGIM India Long Term Equity is a tax saver ELSS fund, which comes under section 80C.
  • The equity type of PGIM India Long Term Equity is ELSS.

what is the current Fund Size, Current NAV and Expense ratio of PGIM India Long Term Equity?

The Current Fund Size ₹ 519.18 cr
 The current NAV ₹26.19
 The Current expenses ratio 2.37%
current Fund Size, Current NAV and Expense ratio of PGIM India Long Term Equity

what is the percentage of returns that PGIM India Long Term Equity has given in the last years?

YearsAverage Returns rate of PGIM
 Last 3 Years 28.58%
 Last 5 Year13.16%
  Since launch to till13.67%
percentage of returns on PGIM India Long Term Equity

what is the impact of tax on PGIM India Long Term Equity?

  • Short-Term Capital Gains Tax – STCG is not applicable on ELSS schemes as they have a lock-in period of 3 years.
  • Section 80C is applicable under IT Act 1961 on ELSS schemes hence tax deduction can be made in ELSS schemes.
  • After completion of 3 years, if the profit exceeds 1 lakh, it will be taxed at the rate of 10% (Long Term Capital Gains Tax – LTCG).
  • The dividend received from this fund is added to the income of the investor and taxed as per his respective tax slab.
  • TDS of 10% is deducted if dividend received in a financial year exceeds Rs 5,000

Frequently Ask Questions

What is the current PPF interest rate, and is it subject to change?

The current PPF interest rate is 7.1% per annum. Yes, it is subject to change and is reviewed every quarter by the government.

What are tax-saver mutual funds, and how do they differ from regular mutual funds?

Tax-saver mutual funds are investment options that offer tax benefits under Section 80C of the Income Tax Act. They help you save taxes while potentially earning good returns. Regular mutual funds do not provide specific tax benefits.

How can I find the nearest SBI Mutual Fund office to seek assistance or make investments?

To find the nearest SBI Mutual Fund office, you can visit the official website of SBI Mutual Fund and use their “Branch Locator” tool. Alternatively, you can contact their customer support for assistance.

What is the significance of IDCW in mutual funds, and how does it impact my investment strategy?

Income Distribution and Capital Withdrawal (IDCW) in mutual funds allow you to receive regular payouts from your investments. It is beneficial for investors seeking a steady income stream during their investment journey.

What is the meaning of CAGR in mutual funds, and why is it crucial for evaluating fund performance?

CAGR stands for Compound Annual Growth Rate. It provides the average annual growth rate of a mutual fund’s investment over a specific period. It helps you assess a fund’s performance more accurately.

How can Section 112A of the Income Tax Act impact my taxation on mutual fund investments?

Section 112A states that long-term capital gains from equity mutual funds up to Rs. 1 lakh are tax-free. However, gains above Rs. 1 lakh are taxed at 10%.

Is there a calculator to estimate my retirement corpus using the National Pension System (NPS)?

Yes, there are NPS calculators available online. You can use them by entering details like your age, monthly contribution, and expected returns to estimate your retirement corpus.

What is the expense ratio in mutual funds, and how does it affect my overall returns?

The expense ratio is the fee charged by the mutual fund company to manage your investment. A lower expense ratio means higher returns for investors.

How can I use an FD calculator to determine the maturity amount of my fixed deposit?

To use an FD calculator, input details like the principal amount, tenure, and interest rate. It will then calculate the maturity amount, helping you plan your savings better.

Which are the best mutual funds to invest in 2023 based on current market conditions?

The best mutual funds to invest in 2023 may vary based on individual financial goals and risk tolerance. It’s advisable to research and consult a financial advisor for personalized recommendations.

Why should I consider investing in Bajaj Finserv Mutual Fund, and what are their key offerings?

Bajaj Finserv Mutual Fund offers a range of well-performing funds that cater to different risk profiles. Their investment options provide potential growth opportunities for investors.

When is Parents’ Day in 2023, and how can I gift mutual funds to my parents for their financial security?

Parents’ Day in 2023 falls on 23 July. To gift mutual funds to your parents, you can open a mutual fund account in their name or gift them mutual fund units directly through an online platform. It’s a thoughtful way to secure their financial future and show your love and care.

Can I invest in mutual funds on behalf of my parents, and how can I transfer the funds to their account?

Yes, you can invest in mutual funds on behalf of your parents. To transfer the funds to their account:
1.Open a Joint Account: Open a joint mutual fund account with your parents as the primary account holders.
2.KYC Documentation: Ensure that both you and your parents complete the necessary KYC documentation.
3.Fund Transfer: Fund the investment from your account to the joint mutual fund account.
4.Gift Declaration: You may be required to submit a gift declaration to comply with tax regulations, depending on the amount transferred.
5.Ownership Transfer: If you want to transfer the mutual fund units entirely to your parents, submit a request for the ownership transfer to the mutual fund company.

Disclaimer:

The information in this blog post is for general informational purposes only and not financial advice. Investing involves risks, and past performance is not indicative of future results. Consult a financial advisor before making any investment decisions. Tax rules may change, and readers are responsible for their actions. We are not liable for any losses or damages resulting from the use of this information. Do your research and seek professional advice for personalized guidance. The tax-related information mentioned in this blog post is subject to the prevailing tax laws and regulations. Tax rules are subject to change, and it is advisable to consult with a tax professional to understand the tax implications specific to individual circumstances.

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