Every year, the biggest question that is faced by working people is ‘Where should I invest to save tax?’ Tax planning is as important as financial planning. In fact, since you have to pay taxes until you continue earning, tax planning can be considered a long-term goal as well. Also, many individuals do not understand that investing in a tax saving scheme is as important as doing any other work related to their finances. If you do not invest enough, you may have to give a large part of your savings to the government. Also, some individuals fail to understand that one should invest in a tax saving scheme not only to save tax, but also to be able to earn some capital growth from the amount invested.

If you are a moderately high risk taker and don’t mind investing in a tax saving scheme that invests in equities for long-term capital appreciation, then you can consider investing in Equity Linked Savings Scheme. can.

What is Equity Linked Savings Scheme?

Equity Linked Savings Scheme is an open ended equity linked tax saving scheme that comes with a lock-in of three years and tax benefits. Under Section 80C of the Indian Income Tax Act, 1961 a person can invest up to Rs. 1.5 lakh per financial year in ELSS and claim tax deduction for the same. ELSS is probably the only equity mutual fund scheme that comes with tax benefits.

Here is a simple example to help you understand how ELSS works –

Aditi Mittal is a Senior Operations Manager in a pharmaceutical company earning Rs. 15 lakhs per year. This puts him in the highest tax bracket. Aditi learns about ELSS from a friend and decides to invest Rs. 1.5 lakh in tax saver fund. Now as per 80C of the Indian Income Tax Act, 1961 a person can invest up to Rs. 1,50,000 in ELSS and claim tax deduction for the same. Aditi’s gross taxable income from investing in ELSS has now come down to Rs. 13.5(15-1.5) lakh per annum. Also, the lock-in of three years will ensure that the amount invested will continue to earn interest and can also help build wealth over the long term.

Invest in Axis Long Term Equity Fund for tax benefits and capital appreciation

Axis Long Term Equity Fund is an open ended equity linked savings scheme with a statutory lock in of 3 years and tax benefits. investment objective of
Axis Long Term Equity Fund
The objective is to generate income and long-term capital appreciation, primarily from a diversified portfolio of equity and equity-related securities. However, no assurance can be given that the investment objective of the scheme will be achieved.

Benefits of Axis Long Term Equity Fund

Here are some of the primary benefits of investing in Axis Long Term Equity Fund –

• Axis Long Term Equity Fund is a Diversified Equity Linked Savings Scheme (ELSS) that invests in a mix of Large Cap and Select Midcap
• The fund has a lock-in of 3 years which is the lowest among other tax saving instruments
• The lock-in of 3 years ensures that the money remains invested in equities and does not get disturbed by market volatility.
• Being an ELSS scheme, this scheme comes with the twin benefits of building wealth and saving tax
• Investors can target long term goals like children’s education and their future, retirement or any other long term financial plan
• Axis Long Term Equity Fund has a lock-in of 3 years which is lowest among other tax saving instruments

Consider starting a monthly SIP in Axis Long Term Equity Fund

Those who want to save tax by investing in Axis Long Term Equity Fund can consider starting a monthly SIP in this tax saver fund. A Systematic Investment Plan is an easy and convenient way to invest in Axis Long Term Equity Fund. Anyone can start a monthly SIP and develop the discipline of saving. An investor just needs to be KYC compliant and you can start investing in mutual funds through SIP from the comfort of your home or office using a laptop or smartphone with a good internet connection.

the beauty of
sip The investment is that investors can decide on a monthly SIP amount, as long as the amount is not less than the minimum investment amount mentioned in the offer document. Investors are free to increase or decrease their monthly SIP investment amount depending on the performance of the equity scheme. If they continue to invest in Axis Long Term Equity Fund through SIP for a long time, then investment techniques like compounding and rupee cost averaging can also benefit.

Axis Long Term Equity Fund

An open ended Equity Linked Savings Scheme with statutory lock-in of 3 years and tax benefits

Mutual fund investments are subject to market risks, read all the documents related to the scheme carefully.