indianmutual funds

From this financial year onwards, your savings in approved instruments are deducted directly from your income upto a limit of Rs. 1 lac. ( Of course there are some restrictions, however investment in tax saving mutual fund can be made upto Rs. 1 lac). This does not mean that your investment should be to the maximu limit. Calculate your present commitments of existing investment such us PF. PPF, Insurance premium, etc. See how much more investment you can make. How much of your investments are in equity based tax savings savings scheme? I suggest that 10 to 20% of the available gap, subject to a maximum of Rs.6K can be utilised for investment in this scheme. Do not forget to utilise the Recurring investment plan , so that your investments are spread over the period of 12 months. ( of course you will be able to deduct only that amount invested during this financial year and rest of the investment can be carried to next financial year.)