Looking for the highest paying tax funds? These are the top 4 schemes
The last date for investment for tax savings in the context of the financial year 2020-21 is 31 March 2021.
Have you completed a tax-saving investment for FY 2020-21? If not then hurry up. The last date of investment for tax savings is 31 March 2021. There is no dearth of options for tax saving. These include secured instruments such as Public Provident Fund (PPF) and National Pension Scheme (NPS). At the same time, some options offer additional benefits to increase the money. Tax saving funds or ELSS schemes are in them.
The Equity Linked Savings Scheme (ELSS) offers double benefits of tax savings and capital appreciation over time under section 80C. These are diversified schemes of mutual funds. In these, tax deduction benefits in an investment of up to Rs 1.5 lakh in a financial year.
Most of the funds raised from ELSS fund investors invest in equity or equity-related securities. The remaining amount is invested in the debt instrument. Their lock-in period is the last three years among the options available under section 80C. Due to this, working people invest in them.
Having a low lock-in period does not mean that you should invest in them keeping in mind the three-year investment approach. Since these are mainly equity mutual funds. Therefore, the investment period should be at least five years to seven years. Apart from this, all tax-saving instruments like PPF, VPF, and FD have the potential to give the highest returns in ELSS. You must do your research before making any investment decision.
Here we are telling you some of the best performing ELSS schemes according to the industry rankings of returns and CRISIL ratings.
1. Quant Tax Plan-Growth
5-Year Average Return: 22.58%
Where is the investment of the scheme: telecom services, computer software, industrial mineral
2. Mirae Asset Tax Saver Fund – Regular Plan-Growth
5-Year Average Return: 22.38%
Where is the investment of the scheme: telecom services, hospital, computer software, industrial mineral
3. BOI AXA Tax Advantage Fund – Regular Plan-Growth
5-Year Average Return: 18.55%
Where is the investment of the scheme: banks, computer software, refineries, pesticides, NBFCs
4. Canara Robeco Equity Tax Saver – Regular Plan-Growth
5-Year Average Return: 18.53%
Where is the investment of the scheme: banks, computer software, heavy engineering, NBFCs
Note:- Investment in the mutual funds are subject to market Risk.So Please read all Related Documents before investing these schemes.