Mutual fund is a professionally managed trust where the investment is collected from retail investors. The gathered amount is invested in various popular financial instruments such as shares, securities and plenty. The income earned on these methods is shared proportionally among investors. Thus, mutual fund is considered as one of the best investment way because of its very low charge structure.
In general, these mutual fund schemes are available in three different variables namely growth, dividend and dividend re-investment. Anyway the growth scheme will be considered following three criteria namely return, risk parameters and risk adjusted return parameter.
ICICI Pru Tax Plan
ICICI Prudential Tax Plan is an open-ended equity linked savings plan. It is aimed at improving the benefits of equity investments and also providing tax saving benefits. It has a lock-in period of 3 years. It combines both large and medium sized stock, which has a potential of long-term capital appreciation and growth. The key benefits involved are it provides tax deduction upto the limits specified under 80C of the Income Tax Act, 1961. It also offers no tax on long term capital gains.
HDFC Long Term Advantage
Here is another top mutual fund to discuss. The primary aim of this scheme is to provide long-term capital appreciation from a standard portfolio where the capital is invested predominantly in equity and equity related instruments. It is an open ended equity linked savings scheme having a lock-in period of 3 years. It is suitable for investors who understand that their principal will be at high risk.
Reliance Tax Saver
An open-ended equity linked savings scheme is a long-term equity growth potential for investors investing in equity and equity-related instruments. It has a mandatory lock-over period of 3 years and offers tax benefits.
So, choose the best mutual fund scheme and make a right step.