Best Tax Saving Mutual Funds to Invest in 2019
For those who are working professionals, and are too busy to invest in the stock market, mutual funds are the best way to grow their savings.
In mutual funds, professional fund managers invest on your behalf. All you have to do is invest a fixed amount every month (also called SIP) in these mutual funds and see your investments grow.
In this article, we take a look at income tax saving mutual funds which will help individuals meet their Section 80C commitments.
Best Tax Saving Mutual Funds 2019 List
Birla SunLife Tax Plan
The fund has been providing returns of 21.51% since the past one year. About 50% of their funds have been invested in Mid-Cap funds, which have been the source of the market bull run. A majority of the investments have been made in the financial sector, along with some investments in healthcare and automobile. From an allocation point of view, the fund looks good to perform in the coming few years.
BNP Paribas Long Term Equity Fund
Though the mutual fund has an expense ratio on the higher side of 2.79%, it has been managed well by fund managers Karthikraj Lakshmanan and Abhijeet Dey. The mutual fund has given a return of more than 26% in the last 6 months. The sectoral allocations are limited to financial, services and a few chemical companies.
L&T Tax Advantage Fund:
Being managed by Soumendra Nath Lahiri, the fund has given returns of 23% in the past 6 months. The fund has more than 50% allocations in large-cap companies. The mutual fund has been outperforming the markets consistently and is a sure shot bet to get higher returns.
Conclusion: Best Tax Saving Mutual Funds to Invest in 2019
Instruments like Fixed Deposits have lost their charm and more salaried people are getting attracted towards the equities markets and mutual funds. These 3 Equity Linked Savings Schemes (ELSS) are a great way to save tax, receive greater returns and get wealthy.
Investors will benefit more by investing in such mutual funds rather than in traditional instruments like FD (Fixed Deposits), NSC (National Savings Certificates) etc.