Tax benifit with Investing without locking period?

I need such mutual fund that can give me tax benifit without any locking period so that ican withdraw money any time for my urgent needs
Is there another way of investing that gives me freedom to withdraw money or take a loan on my investment But it must be tax saving investment

5 Replies to “Tax benifit with Investing without locking period?”

  1. Try foreign mutual funds or ETFs with dividends. You will see a statement saying you paid foreign taxes on a form from either your broker or the mutual fund company (mine is a one page joint form that covers several different forms although it’s labeled on the top “1099”). You can deduct up to $ 300 ($ 600 jointly) of this money on line 44 of your 1040 form. This isn’t just an ordinary deduction since this amount is subtracted from your gross income, but from the gross amount you are expected to pay (more bang for the buck).

  2. Look Into a Tax-Free Money Market. Some are even Tax Free on the state level besides the Federal level. You might want to speak to an ivestment advisor first to be sure you are on the right track.

  3. Tax benifit is only for Tax saving Mutual Funds (also called ELSS) & those have locking of 3 years.

    All tax saving instruments have locking period & it is minimum in Mutual fund

  4. Dear Amol

    There is no way you claim tax exemption and withdraw before lock in period of three years.

    Next best thing is to choose a mutual fund which is going to give good dividends. This way your all money will not be blocked for three years, say around half funds will be paid back by way of Dividends.

    Please stay in touch with me on :
    [email protected]
    to know such MF Tax Saving schemes

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