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Best tax saving mutual funds or ELSS to invest in January 2025


Published on 2025-01-09 15:21:06 - MSN
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  • Tax -saving mutual funds or Equity Linked Savings Schemes (ELSSs) helps you to save income tax under Section 80C of the IT Act. You can invest a maximum of Rs 1.5 lakh in ELSSs and claim tax deductions on your investments every financial year.

The article from MSN Money discusses the best tax-saving mutual funds, specifically Equity Linked Savings Schemes (ELSS), to invest in for January 2025. ELSS funds are highlighted for their tax benefits under Section 80C of the Income Tax Act, allowing deductions up to Rs 1.5 lakh annually. These funds invest predominantly in equities, offering potential for higher returns compared to other tax-saving instruments like PPF or NSC, but with a lock-in period of three years. The article lists several top-performing ELSS funds based on their historical performance, risk-adjusted returns, and fund manager expertise. Funds like Axis Long Term Equity Fund, Mirae Asset Tax Saver Fund, and Canara Robeco Equity Tax Saver Fund are recommended due to their consistent performance, lower expense ratios, and diversified portfolios. It also provides insights into why ELSS might be preferable for investors looking for both tax savings and wealth creation, emphasizing the importance of aligning investments with one's risk profile and investment horizon.

Read the Full MSN Article at:
[ https://www.msn.com/en-in/money/investment/best-tax-saving-mutual-funds-or-elss-to-invest-in-january-2025/ar-BB1r8ehC ]