We are all acquainted with the term Mutual Fund without even knowing their best features. I am sure that you would love to invest the lowest amount of your money against the biggest amount of returns. Besides, insuring it against any market ups and downs is the biggest concern. Let me tell you, you can expect maximum and long-term benefits from investing in Equity Mutual Fund. The market experts have always insisted investors to go for equity mutual fund for the following reasons.
Planning the taxes
The most important advantage of putting in funds in equity mutual fund is the tax benefits. Investing through equity saver fund or also known as equity saving scheme you can avail tax benefits for yourself. If you invest a lump-sum amount for the lock-in period of 3 years, it will give you the tax deduction in running financial year up to Rs. 1.5 lakh.
Not stressful to your wallet
Equity mutual fund allows you to make an easy investment through SIP. You can start off with Rs.500/month. There will be regular periodic SIP investment through Electronic Clearing Services in which money will be deducted from your bank account automatically at a predetermined date.
Helpful for portfolio
Investing in a mutual fund allows you to get access to different sectors which ultimately lessen the risk of losses. If the stocks that are outperforming can cover up for the stocks that are underperforming hence that reduce the market risk on your portfolio
An advantage of investing in equity mutual fund is to get capital appreciation benefits. It can give you high inflation-beating returns. When the stocks go high it will mirror the benefits in your investment. It is a great option to earn a good amount.
When you put money in equity mutual fund for longer than the period of 12 months, the returns on it are tax-free. Remember that short-term capital tax gain will be applied at a rate of 15% if you redeem it before one year which will also reduce your appreciated capital.
When you are in need of money, it is easy to stop the SIPs and cash in the number of free or all units you need. This process takes a period of a week, however; if your SIP is matured it can be done in three days.
With all the above-mentioned traits, this kind of Mutual Fund seems the best investment destination for savvy investors. Also have a look at the following salient features endorse the same
- Safe and expert monitoring
- Multiplication of transparent schemes
- Low expense with higher Returns
- Multiple investment options with instalments/withdrawal/tax benefits.
In a nutshell, this kind of Mutual Fund is a one stop destination for your fund for the ease and safety of your wealth management strategies. It is beneficial as through equity saver fund you can get tax benefits plus it is easy to mobilize the fund overall. Axis Equity Saver Fund can be a potential option for investment where you can get all these benefits and can be a prudent investment. Hence, start your investment with Equity Mutual Fund right from today.