Good Invest returns and Tax saving can go hand and hand

Investment, Mutual funds,

 It is quite hard to find a perfect solution that can give the benefits of both good investment returns and tax savings. In the previous article on investment, I have added some solutions. With time, many old favourite options of investment and tax-saving have become less rewarding so people want new solutions. One of such solutions available in front of us is Tax saving Mutual funds and National Penson Scheme. Last year some of the tax-saving mutual funds offered returns of more than 30% which is a great performance and we all want our money to grow. Similarly, NPS offer a good and secure way to manage our funds for retirement. (Also read - Investment in Good Mutual funds in key to success)

Tax-saving mutual funds come with three year lock-in period and we can use a systematic investment plan to invest in them for as low as Rs 500. The value of a few thousand rupees invested 20 years back has become crores in many mutual funds. The problem is that people don't continue their investments for long and they invest for a shorter period of time only. When stock markets are down then it is the right time to invest because our returns become many times in a few years only. Today, there is no use in resting money in the banks because the interest rates are very low and they are likely to decrease with time. 

So, it is good to plan early and start an investment in mutual funds (even for Rs 500) so that we can get good returns in the future. At least every person should invest a minimum of Rs 500 every month in good Mutual funds or NPS and forget about it. When we will invest our money in a good investment option like Mutual funds or NPS and give time for our investment to mature then we can get good returns in the future. Today, we can use free, secure and popular apps like ICICI Direct for investment in Tax-free Mutal Funds and NPS. This site doesn't charge any commission for mutual funds investment and you buy mutual funds directly. 

Download ICICI Direct app for Mutual fund investment

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