Lux Investing

i am beginner investor, wants to invest in tax saving mutual funds....?

i dont have any idea about mutual funds. The main reason i want to invest in mutual funds is to avoid tax and so, i want to know the details of the tax saving mutual funds. For example, i want to invest around 20k. If i do so, the whole 20k will be non taxable only, right? can you please provide me clear details ? Please provide some written data rather than giving some links(as i have already searched in web) ;) i dont have any idea about these jargons like dividend,returns?

Public Comments

1. sbi has announced magnum taxgain to save tax ."get tax benefits on investments upto Rs.1 lakh". sms 'taxgain' to 56161, call:1800 22 30 40 or visit www.sbimf.com to know further details.
2. If you don't have idea about financial jargon like dividend and returns, it is best for you to save using insurances. LIC has a good trust among people when it comes to returning their money. Not sure about others that have popped up recently. I look at savings as a multi-storey building. The foundation is in the bank savings such as RD and FD. The ground floor is like insurance policies. The first floor is like mutual funds. The second floor is like investments in stock market. The third floor is like your salary. It is from here, you will make the underlying storeys stronger everyday. Many salaried people don't go farther. Businesses, however, have a much taller multi-storey structure when it comes to finances.
3. For tax savings you can go for investments that are eligible for tax deduction U/s 80c. Your taxable income will be reduced to the extant of your 80c investments subject to maximum deduction of Rs.1 lake per year. Regarding tax saving Mutual Funds (MF): You have to invest in any Unit linked insurance Plan (ULIP). Now the stock market is hot and I advise you not to go for ULIP. It is risky. You may gain or you may lose in ULIP investment. It is all depend on the stock market. If you still want to invest in MF, then ask the agent for incentive (commetion). Last year a LIC agent has given Rs.8,000 (incentive) back for the investment of LIC Money Plus Rs.80,000. He has taken only 72,000 and given us units for Rs.80,000. If you want a safe investment invest in NSC, PPF or a bank FD which is eligible U/s 80c. I am still giving you a web link for 80C investments. Your web search is different and our web link will be different. I have given you a web link which you will understand well.