Take a look at funds that offer a combination of tax savings and pension after retirement
टेक अ लुक अत फुन्ड्स ठाट ऑफर अ कॉम्बिनेशन ऑफ़ टैक्स सविंग्स एंड पेंशन आफ्टर रेतिरेमेंट
If you thought equity-linked savings schemes (ELSS) were the only mutual fund (MF) products you could invest in to save tax under Section 80C, here’s a surprise. Mutual fund pension plans, targeted towards your retirement corpus, can also help you in your tax planning. These are debt-oriented balanced funds that take equity exposure of up to 40 per cent (as opposed to 65 per cent equities in regular balanced funds), while keeping the remaining in ‘safer’ debt instruments.
Currently, there are two MF pension plans on offer—Templeton India Pension Plan (TIPP) and UTI-Retirement Benefit Pension Fund (UTI RBPF). Both these schemes offer section 80 C tax benefits.
For instance, if your taxable income is Rs 3 lakh, and if you invest Rs 1 lakh in TIPP or UTI RBPF, your taxable income comes down to Rs 2 lakh. As these schemes target your retirement, they mandate that you stay invested till the age of 58. Early withdrawals attract a high exit load. Of the two, we suggest you take a look at TIPP.
Consistent performance
Monday, June 30, 2008
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