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How to invest in tax saving mutual fund schemes?

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When it comes to mutual funds, most of the people have a misconception that tax benefits will be available on investing in all types of mutual funds. However this is not true. Availability of tax benefits will vary across funds. There are significantly three types of tax benefits on mutual funds: tax deduction, tax exemption and indexation benefit. Under section 80 C of income tax act, one can enjoy a tax deduction up to Rs 1,50,000 on investing in various mutual funds. ELSS is an example to mutual fund with tax deduction benefits. If you want to know more about tax saving mutual funds, watch the video.

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