Why Select Tax Mutual Funds ?

When there are so many options available for investors, a number of questions do arise in the minds of customers in regard to why to go in for tax saving funds. Some of the reasons why these funds are so popular are as follows:

Very Lucrative: Investors who decide to invest in tax savings can save sufficient amount of tax money on these funds and at the same time make money from it. The reason for this is because tax saving mutual fund have a good rate of return, thus making them very lucrative in nature.

Outperform Other Funds: Another reason why to go in for such types of fund is because they are known to outperform other bonds and stocks by a great margin. According to research and surveys, it was found that these funds are the best performing funds in the market.

A load of *bs*, if you will please excuse me.

Originally Posted by just4kix

A load of *bs*, if you will please excuse me.

ok...

but i think its like grabbing your collars in many different ways..

I don't know the ABC of mutual fund as i keeps myself away from stock market. since the money comes from hard earned practice i feels doubtful that my money is in safe hands or not !!!!

Originally Posted by jain347

I don't know the ABC of mutual fund as i keeps myself away from stock market. since the money comes from hard earned practice i feels doubtful that my money is in safe hands or not !!!!

your money is at safe hands.. .but you are giving your money now to get it back after sometime.. thats the thing.!

Probably best way to save money is through investment at right venues only. Loose money is not saving, and is used to get spend very soon, so make smart investments and be a smart investor.

Can we divert our income tax with the Investment in mutual funds. I mean to say I we Invest in mutual fund then there is no need to pay Income tax.If it is possible then I am ready for Investment.

I dont know where the income tax aspect came in. There is no relation between investing in mutual fund and income tax. Mutual fund investments are not exempt under any section but if you stay invested in a mutual fund for more then a year and then sell it and also manage to make a profit then under the current regime you wont have to pay income tax on the gains as it would be considered long term capital gain. If you sell your units within a year it would come under short term capital gain and will be taxable accordingly.