Tax Planning Made Easy: Leveraging the Power of Tax Saver Mutual Funds

Whether you are a salaried professional or self-employed, Tax planning is a must and one should start from the day they start earning! It’s an essential task nowadays to optimize all your tax liabilities while ensuring that you also achieve your goals without any hassle in the long run. Moreover, as everything is digital, there is no worries as everything can be initiated with just a few taps on your smartphone. 

Now, for those who are not aware, there are certain investment avenues that can help you save your taxes to a great extent. Yes, you heard it right! These are tax saver mutual funds, which definitely work as versatile and effective tools and help individuals save taxes and create wealth. 

Today, in this article, we’ll dive deep into the intricacies of these investment avenues and explore every possibility of how they can simplify our tax planning process. 

What are tax-saving mutual funds? What are its advantages?

As the term suggests, these mutual funds help you save on taxes. These are also known as Equity Linked Savings Schemes (ELSS) and are basically a special category of best mutual fund to invest today that offer certain tax benefits. 

This falls under the Section 80C of the Income Tax Act of 1961. 

So, when you plan to invest in these funds, you are in for a ride as your hard-earned money is invested in equities, providing you with clear exposure to the stock market while also offering tax deductions on the other hand.

The amount is invested in the equity market, and these funds have a lock-in period of 3 years, until which you cannot withdraw your investments at any cost. 

  • Short Lock-in Period

ELSS funds have the shortest lock-in period of all tax-saving investment options. This means that you can easily redeem your investment after three years.

  • Higher Returns

ELSS funds invest primarily in equities, offering the potential for higher returns over time. So, it is a wise decision to make this investment! 

  • SIP Option

ELSS funds allow investors to invest through the SIP route, enabling them to invest a fixed amount at regular intervals. This offers the many benefits associated with the best mutual funds for SIP.

  • Tax Benefits

There are several tax benefits, including being able to claim Rs. 1.5 lakh tax deduction per financial year for investments made into ELSS. Another tax benefit is Rs. 1 lakh tax exemption on long-term gains, and dividends received are tax-free.

How to invest in ELSS? 

I invested in ELSS via the Bajaj Finserv application, which I generally use for all kinds of digital payments. So, I’ll share my personal experience, and here is a step-by-step guide for your reference:


  1. Download the Bajaj Finserv Application on your smartphone. It is available for Android (Play Store) and iOS (App Store). 
  2. Sign up with your credentials.
  3. On the home page, you’ll see a section for ‘Investment Bazaar.’
  4. Here, go on ELSS
  5. Select the plan that suits you, and you are good to go


There is no doubt in the fact that if you are earning money in India by the right means, then as an abiding citizen, you are bound to pay tax for obvious reasons as per the law. However, you can also save some money by investing smartly and wisely in tax saver mutual funds. So, what are you waiting for? Hurry and invest in ELSS now! 

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