Save your money from taxman, make it grow 12% or more! INVEST! These mutual funds are best bets

Saving income tax and getting better mutual funds returns is one of the most sought demands of investors. In fact, there is a section of investors who invest in mutual funds to get exemption on their income and investment experts are fully aware of this. Therefore, they are suggesting mutual fund plans that give better returns if compared to PPF (Public Provident Fund). But, in PPF, an investor can get around 8 per cent (in July to September 2019 quarter it's 7.9 per cent) return while in mutual funds, an investor can expect a whopping 12 per cent and higher returns if invested for long-term, say 10 or above years.

Elaborating upon the mutual fund returns and the tax exemption one can expect on income, SEBI registered investment expert Manikaran Singh said, "If an investor goes for long-term investment in a mutual fund plan, he or she can expect around 10-11 per cent return. However, if he or she decides to invest in ELSS (Equity Linked Saving Scheme) plan, his or her returns are expected to be at least 12 per cent in the same time period. So, an investor should invest in ELSS mutual fund plans if the investment is for the long-term." On income tax exemption that one can expect while investing in ELSS mutual funds Manikaran Singh said, "In ELSS mutual fund plans, one can get tax exemption on up to Rs 1.5 lakh income on his or her investment as Long Term Capital Gain Tax (LTCGT) is exempted up to Rs 1.5 lakh on ELSS mutual fund income." 

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#BULLvsBEAR | जानिए सन फार्मा पर है किसका प्रभाव, BULL या BEAR? pic.twitter.com/edG1poCAOU

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Batting for the ELSS mutual funds Harsh Jain - Co-founder & COO at Groww said, "With time, it is good to see more people investing in ELSS to save tax. The lowest lock-in period of 3 years appeals a lot to investors. The additional upside to this is the potentially high returns investors can get. It is the only tax saving option that allows investors to invest in equities. All other options are fixed return options only. SIP is turning out to be a popular way to invest in ELSS as it allows investors to automate their monthly investments in ELSS."