How are Mutual funds beneficial in tax planning?
If we chose mutual funds, there are lot of banks issuing the same. What is the key critirion used to decide about selection of mutual funds
![]() |
How are Mutual funds beneficial in tax planning?
If we chose mutual funds, there are lot of banks issuing the same. What is the key critirion used to decide about selection of mutual funds
Hi
Prema
Apart from lot of banks there are other companies who have floated Mutual fund .
The key critirion is your risk appatite . There are different type of fund like : Capital goods fund, balance fund, real estate fund, energy sector fund and purely debt fund .
Aprt from personal preference Past performance of fund and Fund Manager etc are also taken in to account .
As far my experience I have burnt my hand in Mutual Fund some year back . But it doesn't mean that same will apply to you . I prefer Pure Debt Fund (only if I think interest rate is stable if interest rate increase then I have to suffer loss) and directly investing in share market .
Thanks & Rergards
Yash
First, this question would be best posted in an INVESTMENT forum, rather than this (TAX) forum.
That said, there are mutual funds for virtually EVERY type of investment (commodities, stocks, bonds, real estate, derivatives, debt, foreign bonds, U.S. government bonds, state government bonds, municipal bonds, etc.).
If you are not familiar with how mutual funds work, best put your money in a money market fund and TAKE THE TIME TO LEARN WHAT YOU NEED TO KNOW before you invest.
Investing in the mutual funds is not tax planning; there is no tax benefit. It is investment planning.
Hi
Mukta A
In India from time to time Fund House come out with Certain type of investment product under mutual fund which have certain type of tax benefit . But under this scheme there is lock in period for your investment .
Regards
Yash
Noted!
All times are GMT -7. The time now is 09:28 PM. |