A prudent man always thinks about the future. Is used a little amount every month and invest it in an option where he can get maximum return. In the market, one can find a lot of options where investment can help him earn a good return. However, each of the options has some benefits and perfume limitations. One needs to analyse the benefits risk and return prudently before investing the amount. Looking at various options, available in the market for a retailer, the mutual fund investment can be termed as the right one. One can earn a good return on his invested amount over a period. Here one needs to remember that this option also carries little risk. It is an option which can fetch the desired benefits only in the long term. Hence one who looks for short term gain must not go for it. The system of mutual fund investment is completely transparent, and one can check situation office investment at any point of time.
How to invest in a mutual fund?
The mutual fund companies have made investment white simple and easy for the model investors. One can invest in one shot or go for a monthly investment plan. For an investor, it is necessary to check which option can help him built the desired portfolio. There are offline and online investment options offered by mutual fund companies.
The tax saving and mutual funds:
Those who fall in income Tax categories it is necessary to pay tax. However, it is difficult for one to give away his hard-earned money in the form of tax to the government. In a mutual fund, one can find income Tax tools that can help him to save his income tax. This tool is known as ELSS. Here one can invest an amount up to 150000 per annum. This provision is made by the government under section 80c.
One can go for investment in tax saving tools in one shot or monthly. As per the experts, the monthly option is far better than paying the amount together. This monthly option is known as SIP. It is known to everyone that the amount invested in a mutual fund is invested by the company in the share market. The SIP can help one get benefit irrespective of the market condition.
The amount invested here cannot be withdrawn for a certain amount of years. Hence it is known as a close-ended fund. Usually, there are 3 to 5 years when the investor cannot withdraw this amount. However, the benefit what he gets is much more then what he expects. The main benefit here is one can save income tax and also get the return on the amount he has invested in this tax-saving tool. Once the lock-in period is over, one can withdraw the amount as he wants. Hence, for small investors, this is known as the best option. It also helps one to save some amount regularly and achieve future financial goals.
The amount invested here cannot be withdrawn for a certain amount of years. Hence it is known as a close-ended fund. Usually, there are 3 to 5 years when the investor cannot withdraw this amount. However, the benefit what he gets is much more then what he expects. The main benefit here is one can save income tax and also get the return on the amount he has invested in this tax-saving tool. Once the lock-in period is over, one can withdraw the amount as he wants. Hence, for small investors, this is known as the best option. It also helps one to save some amount regularly and achieve future financial goals.