Benefits of Tax Saving Mutual Funds In India

• If you can't afford to put in large sums to invest then the investing in ELSS can begin with Rs. 500 and has no upper limit, unlike PPF and NSC.
• While there is no upper limit, only investments worth Rs. 150,000 will be eligible for tax benefits.
• Investments made in tax saving mutual funds come with lock in periods of 3 years.
• As a result of being mutual funds these investments come with an inherent risk factor which can either low, medium or high based on where the funds are invested.
• Typically, tax saving mutual funds are ELSS (Equity Linked Savings Schemes) and open ended.
• These mutual funds also offer nomination facilities.
• Many of the ELSS schemes will feature entry and exit loads. These are the fees paid to the mutual fund providers.