Tax deduction of Rs. 40,000, The bold mutual fund claim

Tax deductionThe Mutual Fund claim a tax deduction of a sum of Rs.40,000 amidst the COVID-19 pandemic. My main purpose is the tax deduction. “I am looking for a plan, which will help me to claim an exemption for Rs 40,000. Also, give good returns in the future. Could you please suggest some good plans?” said Mukul Verma.

If you are looking for a tax saving mutual funds, mutual fund claim that will help you to save taxes of up to Rs 1.5 lakhs under Section 80C of the Income Tax Act then here is something that will draw your attention.

Although your details are not available at this moment, I would still like to take you through some points you should consider before investing ELSS or tax saving mutual funds and supports your Mutual fund claim. ELSS or Equity Linked Saving Schemes generally invest in stocks.

These stocks may be risky and volatile in the short term. So, you should dare to invest in them only if you have a high-risk tolerance level and capacity to stand still volatility and gain from the mutual fund claim simultaneously.

Often the ELSS funds come with a compulsory lock-in period of three years straight. However, you should deter to get into them with a three-year horizon in your mind.

As mentioned above, equity can be volatile and risky in the short term pan. You should invest in the equity schemes, including the ELSS funds, only if you have an investment horizon of at least five to seven years of insight. This extremely important in the current market scenario which is infested with the pandemic.

If you continue to dare to invest and hold your equity mutual fund investments irrespective of the market conditions, they can offer superior returns over a period. For example, the ELSS category has offered an annual return close to  8.22% over the last 10 years.

The returns to the mutual fund claim might seem to be modest because of the sharp plunge in the stock market after the rise of the Covid-19 pandemic.

 
 

NEED A LOAN?

I have read the Privacy Policy & Agree to Terms & Conditions and authorize Dialabank & its partner institutions to Call or SMS me with reference to my application.


Latest News

Menu