5 Replies to “what is difference between mutual fund and mutual fund tax saver ?”

  1. Scheme offer tax rebates to the investor under Income Tax Act called as Tax scheme (ELSS).

    Normal & Tax Saver (ELSS) investment pattern is same for mutual fund.

    ELSS scheme it’s a lock in period for 3 years. You get benefit under 80C that why you stay for 3 years.

    Normal MF scheme no benefit for 80C . you can withdrawal your money any time.

    Your Returns always same no major difference 3-4%

  2. mutual fund is wider term. If some one make investment in mutual fund it can or cannot save the income tax and mutual fund tax saver saves the income tax when you make the investments in it.

  3. Mutual fund is an instrument or method by which you can reap the benefits of investing into equities or markets or stock exchanges at low prices. As the name suggests it is mutual so all the investors money are combined into a common pool and portfolio for that fund is created by mutual fund managers which buy out stocks out in the market.
    Advantages being you get to invest into equities at a very cheap price.
    With limited resources you are reaping the benefits of the stocks.
    No need for you to do research as the best fund managers do that job for you at a very low affordable price, as all investors share the fees for looking at the portfolio.

    Mutual fund tax saver is a special kind of mutual fund which would save tax for an investor.
    The money invested in mf tax saver plan gets a rebate under section 80C in India.
    The tax saver mutual fund also know as ELSS or equity linked saving schemes have to follow certain rules, such as lock-in period of 3 years, minimum exposure to equties should be 90% at any moment of time.

  4. One more diff is mutual fund tax saver is bit expensive due to higher expense ratio in the initial years. However, in very long run (20 years) mutual fund tax saver can be cheaper due to lower expense ratio at later years.

  5. There are many different types of mutual fund. One category is mutual fund tax saver. In these schemes there is a lock in period of 3 years.

    You would be aware that we can reduce the taxable income by upto 1 lakh by investing in certain schemes. Mutual fund tax saver comes under this category.

    You can see the top mutual funds in this link http://www.moneycontrol.com/mutualfundindia/

    This will help to choose the one to invest.

    It is ok if you are investing in mutual funds for tax purpose, otherwise as purely an
    Investment option mutual funds do not have a good track record. Just check the results and you will see that

    1.When the sensex is rising the mutual fund usually don’t rise by that much. For example if sensex rises by 30 percent in a year. You will see that most of the mutual funds will have given much lesser profit than 30 percent.

    2. When sensex is falling the mutual fund falls much more quickly. For example if sensex falls by 20 percent in a year. You will find that most of these mutual funds are losing far more than 20 percent.

    i feel that there is lot of unnecessary fear of share market. It is much better to invest directly in share market.

    You can try out this Free Ecourse given in this link http://www.invest-in-shares-in-9minute.c… , it is really very good. It is about 50 pages of very useful info. You really get to build a solid foundation of information about the share market.

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