Investing in tax saving mutual funds & Infrastructure bonds is the best way to save on taxes.

Why tax saving mutual funds?

  • Get upto Rs.1,00,000 exempted from tax under section 80c.
  • Lowest lock-in period - just 3 years - of all tax saving investments.
  • 100% equity market exposure - best return potential of all investment classes
  • Easy and free - no demat account required, no entry load, no transaction fees to invest

So, tax saving mutual funds are easy to invest in, offer the best return potential, and has the lowest lock-in period of all tax saving investments!

For example, if you had invested Rs. 20,000 in HDFC Tax Saver fund (one of our current recommended funds) in the year 2008, not only would you have saved upto Rs. 6000 in taxes in the same year, your investments would have grown to Rs. 30,592 now (*as of September 22, 2011) - an annual return of 15.22%! . What's more, the profit of Rs. 10,592 would be tax free as well!

Recommended funds

For this year, FundsIndia's recommends the following ELSS funds:

  

Advisor Selected Best Tax Saving Mutual Funds



  

ZERO Cost Mutual Funds Investing



  

Lowest lock-in period among all Tax Saving Instruments(3 yrs)



  

ELSS scheme is being phased out next year; Take maximum advantage of this scheme, this year.



  

Invest upto Rs 1,00,000.

 Advisor Selected Tax Mutual Funds

                                          More Tax Funds Total (Rs.)
These are our Advisor selected Tax Saving Mutual Funds. You can choose other Tax funds also.   Investment Summary:
Tax Mutual Funds :
Tax Infra Bonds (Rs.) :


How can investments in Infrastructure bonds be exempted from income-tax?

Investments made in Infrastructure bonds upto the amount of Rs.20,000 can be exempted from income-tax under section 80ccf.

  

Tax Saving Infra Bonds has a separate Rs.20,000 bucket, over & above the usual 1,00,000 p.a.


  

Can be acquired in Demat or Physical form (Demat account need not be necessarily with us)


  

Will be Listed in BSE


  

Assuming 30% tax rate, the real interest rate will upwards of 10% p.a., due to tax savings



 Infrastructure Bonds/ Tax Free Bonds

Tax Mutual Funds Bond Rating Interest Rate (%) Amount (Rs.)* Rated By Bond Type
  Total (Rs.)
Infrastructure Bonds are offered by Financial Institutions for funding India's Infrastructure needs. Participate in nation building & Save taxes too.   Investment Summary:
Tax Mutual Funds:
Tax Infra Bonds: Rs.


I have already selected Tax Saving Mutual Funds &
Infra Bonds.
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