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Best tax saving mutual funds or ELSS to invest in February 2025


Published on 2025-02-10 23:41:29 - MSN
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  • Tax -saving mutual funds or Equity Linked Savings Schemes (ELSSs) helps you to save income tax under Section 80C of the IT Act. You can invest a maximum of Rs 1.5 lakh in ELSSs and claim tax deductions on your investments every financial year.

The article from MSN Money discusses the best tax-saving mutual funds, specifically Equity Linked Saving Schemes (ELSS), to invest in for February 2025. ELSS funds are highlighted for their dual benefits of tax savings under Section 80C of the Income Tax Act and potential for higher returns due to their equity exposure. The article lists several top-performing ELSS funds based on their historical performance, risk-adjusted returns, and fund manager expertise. Funds like Axis Long Term Equity Fund, Mirae Asset Tax Saver Fund, and Canara Robeco Equity Tax Saver Fund are mentioned for their consistent performance and diversified portfolios. It also provides insights into why ELSS might be preferable over other tax-saving instruments like PPF or NSC, emphasizing the lock-in period of three years, which is shorter compared to other options, allowing for quicker access to funds if needed. Additionally, the article advises investors to consider their risk appetite, investment horizon, and financial goals before choosing an ELSS fund, and to keep an eye on the expense ratio and the fund's performance over different market cycles.

Read the Full MSN Article at:
[ https://www.msn.com/en-in/money/investment/best-tax-saving-mutual-funds-or-elss-to-invest-in-february-2025/ar-AA1yMX94 ]
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