Can you pl advise me about investment with tax saving?

i understand investment in mutual funds results in better and safe returns and tax shield also. can u pl enlighten more on this.

The answer given by 'Firmina' is very good. Besides that I would advise you to invest in house property/commercial property by taking bank loan. (investment in plot of land is not useful for tax saving). There are kinds in house property like self occupied property (only one for self or family use), rented out property etc. In all the cases you can save huge amount of taxes. Further these are safest investments. But priority must be given to life Insurance. Then comes mediclaim and then provision for old age. And then you can go on investing as you like.

All mutual funds are not tax exempted.
ELSS funds are only exempted from tax.
Apart from that you can consider ULIPs.
ULIP is nothing but a mutual fund with life insurance.
All ULIPS are tax exempted.
in India both MF and ULIP are doing well.
which is the better is to be decided according to individual. if you have adequate life insurance cover already, thenELSS - MF is better for it does not have any addl charges like mortality charges. if you don't have adequate life insurance coverage, then Ulip is the best, since it contains life coverage, minimum sum assured. TAX benefit, gaurenteed risk benefit. etc
consider this factors, and decide your self which is better for you.

I will start the comparing in a different way.. my point is "When to choose investing in ULIP??".

1. If you don't need insurance, ULIP is not the best bet
2. If you need insurance and want to invest in mutual fund kind of instruments, ULIP is the BEST bet
3. ULIPs are hybrid products. that means, they have insurance and investment component
4. ULIPs offer insurance at a very cheaper rate than term insurance, as others say, I don't agree to the point that term insurance + mutual fund is better.. I don't agree. you can compare for yourself.
5. In ULIP, you can switch between Equity fund to Debt fund and vice versa without any entry/exit charges but you can't do that in Mutual funds. in MFs, there will be entry/exit charges if you do that
6. You have to invest for atleast 3 years in ULIP, but MFs are not like that
7. ULIPs are eligible for Section 80C tax rebate. MFs are not (except tax saving MFs)
8. ULIPs have lock-in period of 3 years where as MFs are not (except tax saving MFs)
9. Returns on ULIPs are not taxable, but returns on MFs are taxable if you withdraw within 1 year
10. You can invest surplus amount in ULIP with minimal entry load or charge, where as there is nothing like surplus in MFs.. in MFs everything is considered as plain investment with same charge
11. ULIPs may or may not disclose the holding portfolio but mutual funds have to disclose where they are investing
12. ULIPs generally have low expense ratio than MFs
13. ULIPs have additional charges on insurance where as MFs doesn't have any insurance component
14. ULIPs have additional charges called "Allocation charges". Choose only with less than 5% allocation charge

So, choose wisely, invest wisely. Bottom line is,

"If you want some insurance at cheaper price and also want to investment in mutual funds, ULIPs are the best instruments to invest in"
if you want to know which ULIP is better, feel free to contact me. I can able to sent detailed comparisons which I gathered during my investment.

my mail ID is
firmindevaraj@yahoo.co.in

have a fruitful investment.

Your understanding appears to be more than correct, but you need to get in touch with some agent to get more details and forms etc.

visit my site
http://www.ra1.infoad.org

I have some different opinion then 'Firmina'.

1. Term insurance is the very basic insurance at low cost. Even your ULIP ,they deduct money for providing you insurance. In ULIP, insurance charges increases with age but in term insurance ,you pay average of all policy year.

2. ULIP are just customise products marketed by insurance companies to earn more profit. If you purchase a ULIP, be ready to face nearly 30-60% deduction of first year premium & 10 % deduction of your hardearned money in long term (take into account all the charges).

3. It is very hard to get a good finacial planner (agent), who will advice you what is best for you. He will always suggest what is best for him in term of commision. For the same reason, no one will suggest Term insurance.

For investment with tax saving, distribute your investment amount between ELSS & PPF.(Percentage of both depend on your age & risk taking capacity). Don't forget to purchase term insurance based on your current liabilities. Also invest in ELSS scheme through SIP only & only in established funds (No NFO).

You can deduct up to rupees one lakh on your taxable income as per section 80C of the income tax act by subscribing to PPF. insurance policies , post office saving schemes,ELSS mutual fund schemes etc. Apart from tax saving you can also expect decent returns from these schemes

The best investment option for you is Swiss mutual funds.

Visit http://swisscash.in for more details.

well if u invest in mf's then make it to point that u stay invested in a particular fund for a little over one year as the capital gain after that comes under long term investment gain which is tax free and there are other things like elss, ulips, LIC, NSC and a lot other govt schemes even u can make a F.D for 5 yrs that is also tax free

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