Mutual funds for saving tax

General
1

Hi Guys,

Need your expertise in knowing few things.

This is my tax simplified statement.


1) According to point 14 I need to invest Rs.15,750 to be tax free?

2) If I do above, then I will receive 1,777 as my tax return? 

3) I was looking at best performing mutual fund in moneycontrol (http://www.moneycontrol.com/mutual-funds/performance-tracker/returns/elss.html). So, If I invest in either ELSS or RGESS I can save tax?

4) Also, all the mutual funds in the above mentioned site are close-ended?

5) from the same link above if i invest in lets say Largecap or midcap/small cap can i still save tax?

6) what exactly are ELSS/RGESS? as far as i have read its like equity + debt kind of like hybrid funds?

Thank You :-)

2

  1. Yes

  2. Yes

  3. Yes

  4. They are not closed ended, but once invested you are locked in for 3 years.

5/6. RGESS is a scheme where you can open a special kind of demat account and buy stocks directly on the exchange. Possible only if you are first time investor.

  ELSS also called Equity linked savings schemes are typically diversified mutual funds (they are not hybrid, and u don't get things like large cap/mid cap) where you can invest into them like all other mutual funds. You are locked in for 3 years if you want to get the benefit of tax exemption.
3

Thank you Nithin :slight_smile: