Top SIP Plans in India for Maximum Tax Savings
Looking to save taxes while building wealth? Systematic Investment Plans (SIPs) in Equity-Linked Savings Schemes (ELSS) offer a fantastic avenue for achieving both. This article explores the best SIP plans in India for tax savings, ensuring that you can make informed decisions about your investments.
Why ELSS SIPs Are Perfect for Tax Savings
Tax Benefits: Investments up to 1.5 lakh annually are eligible for deductions under Section 80C of the Income Tax Act. This can significantly reduce your taxable income and lower the tax you have to pay.
Flexible Investment: Starting with as little as 500 per month, ELSS SIPs provide a flexible and accessible way to invest consistently over time.
Shortest Lock-in Period: ELSS funds have a 3-year lock-in period, which is the shortest among all 80C options. This means you can start seeing returns sooner after your investment.
Higher Returns: Since ELSS primarily invests in equities, they offer market-linked growth that often outperforms traditional instruments like PPF or FDs in the long term.
Top ELSS SIP Plans in India 2024
Here are some of the best-performing tax-saving funds to consider for starting your SIPs:
Mirae Asset Tax Saver Fund
Returns 3 Years: ~19%
Low Expense Ratio: With a consistent performance, this fund is an excellent choice for those seeking stable investment growth.
Canara Robeco Equity Tax Saver Fund
Returns 3 Years: ~17%
Focus on Large and Mid-Cap Stocks: This fund offers stable and reliable growth by investing in a diverse range of Indian equities.
Quant Tax Plan
Returns 3 Years: ~21%
High Growth Potential: This fund is ideal for risk-takers who are looking for higher growth and returns.
Axis Long Term Equity Fund
Returns 3 Years: ~15%
Popular Choice for Conservative Investors: This fund focuses on large-cap stocks, offering a balanced approach to capital preservation and growth.
Kotak Tax Saver Fund
Returns 3 Years: ~14%
Balanced Approach: This fund provides a mix of large-cap, mid-cap, and small-cap exposure, making it a balanced choice for those looking for capital appreciation and preservation.
How StockGro Can Help You Choose the Best SIP Plan
If you’re new to investing or unsure where to start, StockGro can be your go-to platform for making informed decisions:
Simulate SIP Investments: Use StockGro’s virtual platform to practice investing in ELSS funds through SIPs without risking real money. Compare Funds: Access detailed comparisons of ELSS funds including performance, expense ratios, and lock-in periods. Learn from Experts: StockGro’s community of financial experts and enthusiasts provides insights and tips on selecting the best funds for your goals. Personalized Planning: Align your SIP investments with your financial goals—be it tax savings, wealth creation, or both.Pro Tips for Investing in Tax-Saving SIPs
Start Early: The earlier you start, the more you benefit from compounding. Stick to Your Goals: Don’t let market fluctuations distract you from long-term tax-saving and wealth-building goals. Diversify Wisely: Even within ELSS, choose funds that offer a mix of large-cap, mid-cap, and small-cap exposure.Final Thoughts
Tax-saving SIPs in ELSS funds are a smart and disciplined way to reduce taxes and grow your wealth. Platforms like StockGro make it easy for you to learn, compare, and invest in the best SIP plans, ensuring you make informed decisions every step of the way.