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HDFC AMC is the Investment Manager of HDFC Mutual Fund, the largest mutual fund in India, with over Rs 4 lakh crores as Assets under management. HDFC AMC has a diversified asset class mix across Equity and Fixed Income/Others.   Let us talk about the flagship product – HDFC Large and Mid-Cap Fund HDFC Large and Mid-Cap Fund  The investment objective for HDFC Large and Midcap Fund The Scheme aims to generate long-term capital appreciation/income from a portfolio of equity and equity-related securities of predominantly large-cap and mid-cap companies.  Investment process for HDFC Large and Mid-Cap Fund  This fund aims to invest in companies that are good at executing their operations effectively and are available at reasonable valuations at the entry point. The fund invests in the companies that operate in markets where the Total Addressable Markets (TAM) provide them the potential of being runways for growth.  Portfolio Composition of HDFC Large and Midcap Fund  The portfolio holds the major exposure in large-cap stocks at 56%. The major sectoral exposure is to Finance which is at around 25%. The top 5 sectors hold around 65% of the overall portfolio Note: The pie chart on the left shows the market cap composition of the equity portfolio and the bar graph on the left shows the instruments composition of the overall portfolio.  Data as of 31st Dec 2022. Source: Morningstar  Top 5 holdings in HDFC Large and Mid-Cap Fund  Name Sector Weightage % HDFC Bank Ltd. Financial Services 5.48 ICICI Bank Ltd. Financial Services 4.41 Infosys Ltd. Information Technology 3.46 State Bank of India Financial Services 3.20 Reliance Industries Conglomerate 3.15 Note: Data as of 31st Dec 2022. Source: Morningstar  Performance over 28 years  If you would have invested Rs. 10000 at the inception of the fund, it would be now valued at Rs. 2.70 lakhs.  Note Performance of the fund since launch; Inception date - 18th Feb 1994. Source: Morningstar  The fund has given consistent returns and has outperformed the benchmark over the period of 28 years by generating a CAGR (Compounded Annual Growth Rate) of 12.09%.  Invest Now Fund manager Gopal Agrawal: Collectively over 17 years of experience in Fund Management and 2 years in Equity Research.  Priya Ranjan: Collectively over 15 years of experience. Senior Equity Analyst and Fund Manager for Overseas Investments.  Who should invest in HDFC Large and Mid-Cap Funds?  Investors who are seeking:   to generate long-term capital appreciation/income.  investments in a mix of equity and debt instruments.  Why Invest?  The fund offers exposure to mid-cap for good opportunities for wealth creation.  At the same time, it offers large-cap diversification and steady portfolio growth.  Horizon  One should look at investing for a minimum of 5 years or more.  Investment through Systematic Investment Plan (SIP) may help in tackling the volatility of the broader equity market.  Conclusion  This is the oldest fund with a proven track record of 28 years and has delivered 12.09% CAGR consistently which is better than most equity funds. Thus, it is best for investors looking for a diversified portfolio with exposure to large and mid-cap for wealth creation as well as steady growth. DisclaimerThis is not recommendation advice. All information in this blog is for educational purposes only. 

UTI is one of the pioneers of the Indian Mutual Fund Industry. With over Rs 2.4 lakh crore, the AMC is one of the most trusted names in the mutual fund space. The AMF offers products across asset classes.   Let us talk about the flagship product – the UTI Value Opportunities Fund.  UTI Value Opportunities Fund  The investment objective of the UTI Value Opportunities Fund The primary objective of the UTI Value Opportunities Fund is to generate long-term capital appreciation by investing predominantly in equity and equity-related securities of companies across the market capitalization spectrum.  The investment process of the UTI Value Opportunities Fund The UTI Value Opportunities Fund carries a blend of a top-down approach for sector concentration and a bottom-up approach for stock picking. It follows a barbell approach while picking stocks which means that it invests in those stocks that the market underestimates. Portfolio composition of UTI Value Opportunities Fund The portfolio holds the major exposure in large-cap stocks at 68% and sectoral major exposure is to financial services that account for roughly one-third of the portfolio. The top 4 sectors hold nearly 61% of the portfolio. Note: Data as of 31st Dec 2022. Source: UTIMF  Top 5 Holdings UTI Value Opportunities Fund Name Sector Weightage % HDFC Bank Ltd. Bank 9.63 ICICI Bank Ltd. Bank 6.98 Infosys Ltd. Information Technology 6.45 Axis Bank Ltd. Bank 5.19 Bharti Airtel Ltd. Telecom Services 3.86 Note: Data as of 31st Dec 2022. Source: UTIMF  Performance over 15 years for UTI Value Opportunities Fund Below are the rolling returns of the fund since inception. Note: Data as of 31st Dec 2022. Source: UTIMF  The fund has given consistent returns and has outperformed the benchmark over the period of 15 years by generating a CAGR (Compounded Annual Growth Rate) of 14.38%. Fund Manager Amit Premchandani: is the Senior Vice President and Fund Manager - Equity. He holds a PGDM from IIM Indore and a CFA charter from CFA Institute, USA. He has completed a CA from ICAI. He graduated with a Bachelor of Commerce in 2001 from Heramba Chandra College, Kolkata. Amit joined UTI AMC in 2009 as a Senior Research Analyst  Who should invest in the UTI Value Opportunities Fund?  Investors looking to  build their core equity portfolio with a good risk appetite.  marginally increase their risk spectrum with a concentrated sector allocation portfolio strategy.  Why invest in this Fund?  The fund emphasizes fundamental characteristics of the company such as return ratios & healthy cash flows.  The Fund has the flexibility to position itself more actively across the market cap spectrum.  Horizon  One should look at investing for a minimum of 5 years or more.  Investment through Systematic Investment Plan (SIP) may help in tackling the volatility of the broader equity market.  Conclusion  The UTI Value Opportunities Fund is one of the oldest funds with a proven track record of 15 years and has delivered 14.38% CAGR consistently. Thus, it is best for investors who are willing to take some additional risk for good returns over a long-term spectrum. DisclaimerThis is not recommendation advice. All information in this blog is for educational purposes only. 

If you want to make the life of your child safe, secure, and rewarding, start investing INR 500 every month for the child as early as possible, say financial experts. Even a small amount of INR 500 will go a long way in creating a solid financial corpus if it is backed by good planning and a strong investment vehicle.  The right kind of investment is of utmost importance because it will safeguard the future interest of the child and lessen his financial burden. Best investment plan to invest INR 500 every month for the child Planning an investment of INR 500 every month for a child is a huge thing; hence investors need to consider many factors before finalizing the perfect investment vehicle.  1. Systematic Investment Plan or SIP Invest INR 500 every month for the child in mutual funds with the help of SIP, as the small amount will keep on adding and compounding to create a very large financial corpus. SIPs are one of the best vehicles because it encourages investing and saving consistently in a disciplined manner.  Start as early as possible because it will provide a large window for the fund to accumulate. For example, if the investment period is 20 years and the expected rate of return is 10% per annum, then a monthly sum of INR 500 can result in nearly INR 3,82,848.  Invest through the Edufund App, as it offers a choice from 4000+ direct mutual funds. It is easy to start and stop a SIP anytime you desire.  2. Direct Equity For investors who are not afraid to take high risks, the amount of INR 500 can be used to buy direct equity. Choose growth stocks as they will yield better returns (in the average range of 50%) than average equity, which is expected to yield a return between 13% - 15%. Remember, patience is the key to growth equity, and you have to remain invested for the long term to get solid returns.  3. Public Provident Fund (PPF) The PPF investments are for investors that do not want to take risks and are looking for safe investment vehicles. With a 7.1% interest rate, PPF is a long-term tax-saving investment scheme that can be opened in a bank or a post office.  4. Recurring Deposit Account The interest rate on recurring deposits is nearly 6.5% to 6.9% depending on the bank. The RD account can be opened in a bank or a post office where an investment of INR 500 will keep on accumulating and earning interest throughout the investment period. The RD account is for investors who want to keep their money in a safe environment and simultaneously earn some money. 5. Child Insurance Plans  Child Insurance Plans are some of the best vehicles to invest INR 500 every month for a child. There are child life insurance plans that can be paid on a monthly basis.  With an amount of INR 500, you can buy a term insurance plan that offers high death benefits.  Child investment plans are very advantageous because if in some cases the policyholder dies then the future premiums are waived. The insurance company then keeps on investing the premium amount on behalf of the policyholder, and the amount is given to the child as per the terms and conditions of the policy. Examples of child insurance policies with a premium under INR 500 per month are SBI Life’s Term Insurance Plan, where the minimum premium is only INR 365 per month, and the ABSLI DigiShield Plan, with a minimum premium of INR 477 per month.  If you have a girl child, then there are also several investment schemes just for the girl child. The government-backed scheme Sukanya Samriddhi Yojana was introduced specially to save the future of a girl child. You can invest INR 500 per month and the amount is payable after the maturity period of 21 years.  6. Stocks & ETFs Although stocks are considered risky, they have an advantage over some of the investment options, like recurring deposit accounts, because of high returns over a long period. ETFs are also high return cost-effective investment vehicles through which the investor can invest in entire sectors.  Conclusion Take a leap of faith and start the journey to invest INR 500 every month for the child because it will go a long way in creating a lump sum amount in later years.  Take the help of the investment experts on the Edufund app to create the best possible personalized financial plan for your child with an amount of INR 500. The strategies are backed by data, research, and appropriate tools like the investment calculator so that you will get better returns on your investment, and that too in a secure and transparent environment. Consult an expert advisor to get the right plan TALK TO AN EXPERT

In this blog, we will discuss how mutual funds work. Before we get into greater details regarding a mutual fund, we shall discuss what it is, followed by the types of funds and their operation.  What is a mutual fund?  A mutual fund is a professionally managed fund. It pools money from different investors, such as individuals, companies, trusts, etc. The corpus accumulated is invested in securities such as stocks, bonds, money market instruments, commodities, etc. While some mutual funds invest in a single type of security, others may have a combination of security types. The objective of a fund  One of the most important objectives of any mutual fund is to beat the benchmark returns and category average. A fund is aimed at generating alpha.  How does an investor earn through a mutual fund?  An investor invests in a mutual fund so that they can generate income. The following sources contribute to this income:  Divided payments – Dividend paid by the fund house  Capital gain – Gains accumulated by the fund upon the selling of any security  Net Asset Value (NAV) – When NAV increases, the investor benefits during redemption.  Types of Mutual Funds  There are multiple types of funds based on the asset class. The Securities and Exchange Board of India (SEBI) categorizes these:  Equity Schemes – These mutual funds invest in equities and equity-related securities.   Debt Schemes – This type of mutual fund invests in debt instruments  Hybrid Schemes – This type of fund invests in a mix of stocks and bonds Solution-Oriented Schemes – These are schemes with a specific goal. Example - Retirement fund  Other Schemes – This includes funds that are not covered above. For example, funds of funds.  How do mutual funds work?  Fund house collects money from investors. This fund is then invested in securities such as equities, bonds, etc. Investors get units of the mutual fund as per the amount they have invested.  Pictorially the entire process can be elucidated as under: Source: Corporate Finance Institute What is the cost of each unit?  The cost of each unit is determined based on the fund's total assets net of all expenses. Expenses include management fees, securities transaction tax, other taxes, and administrative expenses. When divided by the total number of shares, Net Asset gives per-share Net Asset Value (NAV).  How to invest in mutual funds online?  To start investing in a fund, you need to have a Permanent Account Number (PAN), a bank account, and be KYC (know your customer) compliant. You can purchase mutual funds through the following:  Directly with the fund house - You can invest directly with the fund house. This option is available both online and offline.  Through third-party portals – You can always invest in using third-party portals such as EduFund. These portals have tie-up with fund houses and offer an unmatched investing experience.  Consult an expert advisor to get the right plan TALK TO AN EXPERT

Goals that individuals plan for themselves before marriage can vary from person to person. Sometimes the goal is to have a fit body that looks amazing in a wedding dress and at other times, the goals are more long term like buying a house of their own or a car.  Marriage is a big event in anybody’s life and it is normal to divide your goals into pre and post-marriage. However, it is not enough to just have goals. You should plan out how you are going to lead your life post-wedding to achieve these goals While money is not the only important factor in a marriage, setting concrete and judicious financial goals becomes crucial to leading a happy married life.  Below is a list of things that you can do as a married person to lead a better financial life after marriage. 1. Open a separate bank account You might already have a joint account with your spouse but that is not enough. It is always advisable to get another bank account that will be solely devoted to your monetary expenses as an individual. Having a bank account exclusively for this purpose serves many purposes other than keeping you from mixing up your finances.  It might bear witness to how independent and responsible you and your partner are. Offering each other time and space can be as important as contributing to your relationship, financial or otherwise. In the long run, it bears testimony to how invested you are in your marriage.  Moreover, being in a marriage does not have to mean that you don’t have any personal goals anymore. These individual goals can be for yourself, your parents, your child, and so on. Having a separate bank account will also prove how invested you are in yourself despite being married.  2. Talk about finances  It goes without saying that in any relationship, communication is key. In a marriage, too, it is important to keep your partner in the loop, as you have decided to live your life together. Among other things that partners should talk about, money is one of the most significant. Being actively involved in marriage also means that partners should stay aware of each other’s monetary difficulties like debts. If your partner is trying hard to pay off debts, home loans, education loans, and the like, it should be a priority to help them overcome it. Romantic gestures need not just be about taking your partner out on dates or handing them a bunch of flowers. Being the person they can depend on in times of adversity can strengthen your bond tenfold.  3. Make a priority list  One of the most important steps in navigating finances is to make lists that state your financial priorities in order. Sit down with your partner and discuss at length if rent should come first or debts, or retirement savings.  Financial planning takes into account things like emergency funds and the first step to start planning these is to place them on your priority list. Ideally, emergency funds should come before investment plans. You should also start clearing up your debts as soon as you can. This way your EMI money will be ready to be spent whenever you need it.  4. Get started with budgeting immediately  Budgeting is indispensable if you are looking to manage your finances effectively. In marriage, you need to go about every step of budgeting along with your partner as you are managing a household together. Budgeting includes your daily expenses and putting away a part of your income as savings every month.  Planning is key, be it for expected or unexpected expenses. Put aside money on regular intervals for expenses you are expecting - those can be a phone or car upgrades or even getting a new house. For unexpected expenses, save money every month as part of an emergency fund. Be in constant touch with your partner about their financial goals so that you can find out how to be compatible.    Surveys often indicate that couples might face stress in their married lives over their unregulated spending habits. Creating separate buckets of savings for different expenses is the healthiest and most systematic way of budgeting. It saves you and your partner the extra tension and ensures happy married life.  FAQs How finances are best handled in marriage? The best way to handle finances is to have an open discussion around money and expenses. Talk about the shared expenses and individual expenses. Whether you have dependents like children, siblings and parents? Try to have two separate accounts for personal expense and a joint account for shared expenses. Plan and save for major events like raising a child, their education, buying a house and trip. What is the best way to budget in a marriage? The right way to budget in a marriage is to discuss the income resources and expenses with each other. Divide the expenses, find out how much you and your partner can contribute and follow the 50-30- 20 rule. Herein you can dedicate 50% of your shared income towards household needs, 30% towards wants and 20% towards savings. Who should be in charge of the finances in a marriage? Both partners should be equally in-charge and responsible for finances in a marriage. Its important to budget, save and investment as partners and discuss the well of contribution towards shared expenses openly. Conclusion Managing finances together with your spouse might not always be easy because as individuals you might have different monetary goals and spending habits. Nevertheless, keeping judgments at bay and instead, helping each other overcome their unhealthy lifestyles and financial adversities can go a long way in securing your marriage.  You can start your investment journey right away with your partner by downloading the EduFund app. Consult an expert advisor to get the right plan TALK TO AN EXPERT

One of the largest AMCs in India, DSP has been helping investors make sound investment decisions responsibly and unemotionally for over 25 years. DSP is backed by the DSP Group, an almost 160-year-old Indian financial giant. The family behind DSP has been very influential in the growth and professionalization of capital markets and the money management business in India over the last one-and-a-half centuries. About DSP Healthcare Fund Direct-Growth Investment objective The primary investment objective of the scheme is to seek to generate consistent returns by predominantly investing in equity and equity-related securities of pharmaceutical and healthcare companies.  https://www.youtube.com/shorts/tucVrl2K7Vw Investment process   This thematic fund invests in established & upcoming companies in the pharmaceutical & healthcare space in India and internationally (primarily, in the United States). While selecting stocks, they focus on their growth, value, and stability. In portfolio construction, they maintain a judicious balance between sub-segments and maintain liquidity considered for stock sizing.  Portfolio composition  The portfolio major exposure of 40% in large cap followed by 23% in small cap. The top 3 sectors hold nearly 94% of the portfolio, with major exposure to Pharmaceuticals and Biotechnology. Note: Data as of 30th Nov 2022. The bar graph shows the top 5 sector weightage of the fund’s portfolio. Source: dspim.com  Top 5 holdings Name Sector Weightage % Sun Pharmaceuticals Industries Ltd. Pharmaceutical 16.48 Cipla Ltd. Pharmaceutical 9.33 Apollo Hospitals Enterprise Ltd. Healthcare Company 6.96 IPCA Laboratories Ltd. Pharmaceutical 5.42 Lupin Ltd. Pharmaceutical 5.41 Note: Data as of 30th Nov 2022. Source: ICICI Pru DSP Healthcare Fund Direct-Growth: performance over 4 years  If you would have invested 10,000 at the inception of the DSP Healthcare Fund, it would be now valued at Rs. 22,427. This fund has outperformed the benchmark in all time horizons. Note: Performance of the fund since launch. Inception date – Nov 30th, 2018. Source: Moneycontrol  The DSP Healthcare Fund has given consistent returns and has outperformed the benchmark over the period of more than 4 years by generating a CAGR (Compounded Annual Growth Rate) of 22.01%  Fund Managers  Chirag Dagli: Chirag has a total work experience of Over 20 years. He joined DSP Investment Managers in November 2020 as Vice President in Equity Team. He is a Chartered Accountant (ICAI India) and also holds a Bachelor of Commerce Degree.  Vinit Sambre: Total work experience of 16 years. Vinit joined DSPIM in July 2007, as Portfolio Analyst for the firm's Portfolio Management Services (PMS) division, which manages discretionary accounts and provides advisory services to institutional clients.  Jay Kothari: Total work experience of 20 years. Vice President & Product Strategist -Jay has been with DSP Investment Managers since May 2005. He completed his Bachelor of Management Studies (Finance & International Finance) from Mumbai University, followed by an MBA in Finance from Mumbai University.  Who should invest?  An experienced investor with a well-defined core portfolio.  Investors with high patience understand that sectoral bets may come with changing cycles.  Why invest?  Offers the potential to grow your wealth & 'earn big' returns if this theme does well (a high-risk, high-return strategy).  Can help you beat the impact of rising prices over the long term.  Horizon  One should look at investing and holding the investment for more than 7 years.  Investment through a Systematic Investment Plan (SIP) may help in tackling the volatility of the broader equity market.  FAQs Who should invest in DSP Healthcare Fund?  An experienced investor with a well-defined core portfolio.  Investors with high patience understand that sectoral bets may come with changing cycles.  What has DSP Healthcare Fund Direct-Growth performance been like over 4 years?  If you would have invested 10,000 at the inception of the DSP Healthcare Fund, it would be now valued at Rs. 22,427. This fund has outperformed the benchmark in all time horizons. The DSP Healthcare Fund has given consistent returns and has outperformed the benchmark over the period of more than 4 years by generating a CAGR (Compounded Annual Growth Rate) of 22.01%  What is DSP Healthcare Fund Direct-Growth's investment approach? This thematic fund invests in established & upcoming companies in the pharmaceutical & healthcare space in India and internationally (primarily, in the United States). While selecting stocks, they focus on their growth, value, and stability. In portfolio construction, they maintain a judicious balance between sub-segments and maintain liquidity considered for stock sizing.  Conclusion  This DSP Healthcare Fund offers favourable sector dynamics - Rising income levels, increasing health consciousness, and government policies mean an increase in healthcare spending, so companies in this space could do well. This scheme is suitable for an investor with a high-risk appetite and who believes in high-risk high rewards.  Consult an expert advisor to get the right plan TALK TO AN EXPERT

How to choose the right mutual fund that can generate the best returns is the most common question among investors. We often judge a mutual fund by its past returns. But that is not enough; you need to make sure the future returns from the fund are also lucrative.   Mutual funds are of different types like large-cap, small-cap, and ELSS, among others. Once you have decided to invest, you must choose where to invest. Knowing about the basic factors that shape investment decisions can help you decide which mutual fund you want to opt for.  Two things you need to do to get started before you choose the right mutual fund 1. Setting a goal One of the most significant aspects of investing is being clear about your goals. A goal can be anything - buying a car worth 5 lakhs, a retirement scheme worth 1 crore, or an apartment worth 5 crores.  Any kind of goal requires a time horizon to function. Say, the goal of purchasing a car can be achieved within a time period of 5 years, or that of getting an apartment within 15 years. Retirement plans have longer time horizons - almost 20 to 30 years. Thus, while investing, you need to set a clear goal according to the time horizon for achieving it.   2. Calculating risk appetite  Once you have set your goal(s) and time horizon, the next thing that you need to analyze is your risk appetite. As the name suggests, risk appetite is your ability to withstand potential losses that might be incurred while investing. Risk-taking is an important aspect of investment. Why? Because the higher the risk, the greater tend to be the returns.  Time horizon becomes an important factor in calculating risk appetite. With a longer time horizon, the capacity to take risks also increases. This is because your investment return rates might decrease but they will still have a longer time window to recover.  What is an equity mutual fund?  Once you are clear about your goals and have calculated the time horizon and risk appetite, you can familiarise yourself with the different kinds of mutual funds so that you can choose the most suitable one for yourself. The first type is called Equity mutual funds in which the basic idea is to invest in the shares of various companies. Here, the fund manager will put your money in the stock market to avail the best returns from it. The returns from such investments depend highly on the market condition, thus, increasing the risk factor in equity mutual funds. But since higher risks mean more returns, you can opt for equity mutual funds if your time horizon is more than 7 years to accommodate for increased risk.   What are the different types of equity mutual funds? Equity mutual funds can be of 4 types based on the level of risk and returns. 1. Large-cap mutual funds The first one is called large-cap mutual funds. They invest in Indian companies that are considered to be in the top 100 in terms of their market value. Here, you invest in shares of famous companies like Reliance, HDFC, and Infosys. The risk involved is moderate and the return rate is about 15%. This can be your go-to if you have a larger time horizon.   2. Mid-cap mutual funds Mid-cap mutual funds invest in Indian companies that are in the top 101 to 250 in terms of market value like Voltas, JK Cement, and Avenue Supermarts. The risk involved in mid-cap mutual funds is higher than that of large-cap funds but the return rate is also more - about 17-18%. The time horizon for mid-cap mutual funds has to be at least 7-10 years to have a suitable risk appetite.   3. Small-cap mutual funds Small-cap mutual funds are ones that invest in companies that are beyond the top 250 in the country. This means that the amount of volatility is increased and so is the risk involved. The bright spot here is that these mutual funds can also get you the highest returns which are at times over 25%. 4. ELSS mutual funds Equity Linked Saving Schemes or ELSS is the third type. This scheme is a dedicated mutual fund allowing investors to save taxes. Here, you have the option to take a deduction of about 1.5 lakhs which will allow you to save almost 46,800 INR in taxes. It, however, has a lock-in period of about 3 years, meaning you won’t be able to withdraw money from this fund for 3 whole years. The purpose is to make you stay invested longer and receive higher returns - about 17-18%. The risk factor is higher than that of large-cap funds but ELSS is ideal if you’re looking to make long-term investments while also enjoying tax benefits.  What is a Debt mutual fund?  Debt funds invest in government securities, corporate bonds, treasury bills, and other such money-market instruments. Unlike equity funds, they do not get affected by market fluctuations and generate fixed returns. If you are looking for low-risk investments, you can opt for debt funds. Since debt funds are low-risk investments, the time horizon required can be about 5 years. The expected return rate might range from 7% to 12%.  A liquid debt fund is a kind of debt fund where you can put your surplus money. This can be utilized for short-term goals, say, for purchasing a laptop or planning a vacation. These generate returns of almost 7% - 9% which is a huge improvement on the 3% - 4% that bank accounts can generate. Liquid debt funds are also a brilliant way to save up for emergencies. One way to secure your equity investments as you inch closer to your goal is to move them to debt investments as debt funds have a low-risk factor.  What is a Hybrid mutual fund? As the name suggests, hybrid mutual funds are a combination of equity and debt funds. This fund is often chosen by low-risk investors because despite offering low risk, it generates better returns than debt funds.  If you are insecure about the high risks involved in Equity mutual funds, you can opt for a hybrid mutual fund. It allows you to partially test out equity investments without being exposed to all the risks. The return rates range from 13% - 14% and goals with shorter time horizons of about 3 years are ideal for this investment.  What is the significance of the expense ratio and exit load?  The expense ratio is the money charged to you by the assets management company for managing your funds. The higher the expense ratio, the lower the returns from an investment. Thus, it is wise to invest in a fund with a low expense ratio.  Another thing you need to know while investing is the exit load or the sum you pay while withdrawing the money from the fund. The purpose of exit load is to stop investors from exiting the fund prematurely. The exit load usually becomes nil after a year of investment. Thus, it is beneficial to be aware of the terms and conditions.  Once you have considered things like goals, time horizons, and risk appetite, you can choose from the different types of mutual funds. Next, you can check out the expense ratio and exit load of the chosen scheme. Good performance in the past might not be guaranteed the same in the future. Nevertheless, it is wise to check out the track record of the fund manager.  A wise thing to do is invest your money in different funds instead of investing all of it in one. Once you have followed all these steps systematically, choose the right mutual fund. FAQs How do I know which mutual fund is best for me? Here is a checklist to help you determine the best mutual fund category: Identify your goals Find out your risk profile Find out your time horizon Figure out the amount needed for goals Talk to a financial advisor What are the different types of mutual funds? There are many categories within mutual funds such as equity, debt, and hybrid. There are further categories like small-cap, mid-cap, and large-cap, multiple-cap mutual funds as well. What is an expense ratio in mutual funds?  The expense ratio is the money charged to you by the assets management company for managing your funds. The higher the expense ratio, the lower the returns from an investment. Thus, it is wise to invest in a fund with a low expense ratio.  What is a Hybrid mutual fund? Hybrid mutual funds are a combination of equity and debt funds. This fund is often chosen by low-risk investors because despite offering low risk, it generates better returns than debt funds.  What is a Debt mutual fund?  Debt funds invest in government securities, corporate bonds, treasury bills, and other such money-market instruments. Unlike equity funds, they do not get affected by market fluctuations and generate fixed returns.

What is Market capitalization? The market capitalization of a company is the number of outstanding shares of that particular company multiplied by the price of each share. It is an indicator of the size of the company based on its market value. Market Capitalisation = (Number of shares outstanding) * (Share Price) Market capitalizations of companies are broadly classified into three types - Market CapitalisationRank In CountryExampleLarge CapGreater than Rs 20,000 CrTop 100 CompaniesReliance Industries, InfosysMid CapGreater than Rs 5000 Cr, but less than Rs 20,000 CrRank among 100-250 companiesCastrol India, LIC Housing FinanceSmall CapLess Than Rs 5000 CrRanked lower than 250Hathway Cable, Thyrocare Technologies Ltd Companies with large market capitalizations are typically market leaders in their respective sectors and are considered to be reliable. These companies also have strong financials which aid in maintaining stability despite market fluctuations and economic conditions/downturns. These stocks tend to underperform when compared to small-cap and mid-cap companies with respect to returns. However, they also tend to offer low volatility and high stability; and hence are suitable for risk-averse investors. Funds that invest a large % of their total assets into companies with high/large market capitalization tend to be more stable than others. These funds are known to often generate a profit for their investors due to the stable performance of their underlying securities. These funds are suitable for investors looking to invest for a long-term horizon of 5-7 years. These funds stay strong and deliver stable returns despite the economic downturns (bear market) and hence are suitable for investors looking for low-risk options for wealth creation. Scheme NameReturn 1 Year (%) DirectReturn 3 Year (%) DirectReturn 5 Year (%) DirectDaily AUM (Cr.)Canara Robeco Bluechip Equity Fund57.9417.7518.382,250.25Axis Bluechip Fund46.3216.5518.3425,134.85Kotak Bluechip Fund66.7014.1115.632,392.31BNP Paribas Large Cap Fund51.6814.0315.111,041.16Mirae Asset Large Cap Fund61.4713.7717.7823,976.51UTI Master share Fund62.3513.4815.367,823.84 Let us now take a look at 6 large-cap funds that have delivered good returns over the past few years and how they have performed. 1. Canara Robeco Bluechip Equity Fund Minimum Investment Amount (Lump Sum)Rs 5000Minimum SIP Investment AmountRs 1000Expense Ratio 0.58% Performance The fund has delivered an annualized return of 17.75% over the last 3 years and has constantly outperformed its benchmark (S&P BSE 100 Total Return Index). The fund has also outperformed other funds and the category average. Pros The expense ratio is on the lower end Fund has higher 1-year, 3-year, and 5-year returns as compared to the category average. Cons None 2. Axis Bluechip Fund Minimum Investment Amount (Lump Sum)Rs 5000Minimum SIP Investment AmountRs 500Expense Ratio 0.50% Performance The fund has delivered an annualized return of 16.55% over the last 3 years and has constantly outperformed its benchmark (NIFTY 50 Total Return Index). The fund has also outperformed other funds and the category average. Pros  The expense ratio is on the lower end Fund has higher 3-year and 5-year returns as compared to the category average. Cons The AUM of the fund is greater than 15,000 Cr. The performance of the fund with respect to the returns stagnates when the fund crosses this AUM threshold. Investors should keep an eye on the performance by monitoring the returns of the fund. 3. Kotak Bluechip Fund Minimum Investment Amount (Lump Sum)Rs 1000Minimum SIP Investment AmountRs 100Expense Ratio 0.92% Performance The fund has delivered an annualized return of 14.11% over the last 3 years and has constantly outperformed its benchmark (NIFTY 50 Total Return Index).  Pros The expense ratio is on the lower end Fund has higher 3-year and 5-year returns as compared to the category average Cons None 4. BNP Paribas Large Cap Fund Minimum Investment Amount (Lump Sum)Rs 5000Minimum SIP Investment AmountRs 300Expense Ratio 1.02% Performance The fund has delivered an annualized return of 14.03% over the last 3 years and has constantly outperformed its benchmark (NIFTY 50 Total Return Index).  Pros The expense ratio is on the lower end Fund has higher 3-year and 5-year returns as compared to the category average. Cons None 5. Mirae asset Large Cap Fund Minimum Investment Amount (Lump Sum)Rs 5000Minimum SIP Investment AmountRs 1000Expense Ratio 0.54% Performance The fund has delivered an annualized return of 13.77% over the last 3 years and has constantly outperformed its benchmark (NIFTY 100 Total Return Index).  Pros The expense ratio is on the lower end Fund has higher 1-year, 3-year, and 5-year returns as compared to the category average. Cons The AUM of the fund is greater than 15,000 Cr. The performance of the fund with respect to the returns stagnates when the fund crosses this AUM threshold. Investors should keep an eye on the performance by monitoring the returns of the fund. 6. UTI Master share Fund Minimum Investment Amount (Lump Sum)Rs 5000Minimum SIP Investment AmountRs 1000Expense Ratio 1.02% Performance The fund has delivered an annualized return of 13.48% over the last 3 years and has constantly outperformed its benchmark (S&P BSE 100 Total Return Index).  Pros  The expense ratio is on the lower end Fund has higher 1-year, 3-year, and 5-year returns as compared to the category average. Cons None FAQs What is Market capitalization? The market capitalization of a company is the number of outstanding shares of that particular company multiplied by the price of each share. It is an indicator of the size of the company based on its market value. Which large-cap funds to invest in 2023? Here are some of the best large cap funds to invest in 2023: Canara Robeco Bluechip Equity FundUTI Master share FundMirae asset Large Cap FundBNP Paribas Large Cap Fund This is not an investment advise. Please consult a financial expert before starting any investments. What is a large-cap fund? Funds that invest in companies with large market capitalizations that are typically market leaders in their respective sectors and are considered to be reliable, are called large-cap funds. Large cap companies such as Reliance, TATA Steel, Apple, Microsoft and many more. Conclusion Listed above were the best large-cap mutual funds to invest in 2021. You can start investing in them through the EduFund platform by just downloading the app and signing up. DisclaimerMutual fund investments are subject to market risks. The past performance of any fund is no surety of its future performance. Please do your own research on the risks associated.

Investing in mutual funds for your child’s education is always advisable. First of all, it is a less stressful option than investing in direct equity stocks because that requires you to have in-depth knowledge of market trends and fluctuations. Secondly, with mutual funds, there are a variety of schemes you can opt for depending on a range of factors. These factors could include the time period for which you can invest before liquidating, the amount of money you can invest, the amount you require to secure the education fund, the level of risk you can take, and so on.  When it comes to building an education fund, here are the top 5 types of mutual funds you can choose from. 1. Large-cap mutual funds The defining characteristic of large-cap equity funds is the fact that these funds invest in the top 100 Indian companies that have the highest market value. Large-cap mutual funds can bring in impressive returns if you remain invested for a long period. If you are a person who wants to avoid taking very high risks with your investments and has decided to invest early for your child’s education, this is the way to go. The average returns rate has historically beaten that of Fixed Deposits and similar investment alternatives. SIP Mutual Fund Investment Read More 2. Mid-cap mutual funds Mid-cap funds invest in Indian companies that come in the next best 250 in terms of market value. These funds are for you if you are ready to take on a higher level of risk. Justifiably, the return rates also tend to get higher. One way to satiate the risk appetite of mid-cap equity funds is to let them season for at least 7-10 years. If your child is in primary or middle school, investing in such a scheme will generate a wholesome amount of wealth by the time they are ready to pursue a college education.   How to track Mutual Funds? Read More 3. Equity-linked saving schemes  Among the various perks of investing in mutual funds is the tax deduction benefit. Equity Linked Saving Schemes are devoted to enabling investors to save taxes, as the name also indicates.  The only catch here is that it has a compulsory lock-in period of at least 3 years. The aim here is to keep you invested longer to counter the risk level. If you can spare that amount of time, then ELSS is definitely a go-to. An added benefit is the historically high level of returns.   Mutual Funds to invest in Child Education Read More 4. Low-risk options  There is this whole myth surrounding mutual funds that they only come with a high-risk factor. On the contrary, a debt fund is also a kind of mutual fund that comes with low risk, so much so that it remains undisturbed by market fluctuations.  Debt funds are still a better option than Fixed Deposits because they can generate a higher percentage of returns. So, if you are not in favor of taking high risks, debt funds are a go-to.  5. Hybrid mutual funds  If you are confused about your investment options or even hesitant about risking too much, the answer to your problems is a hybrid mutual fund. This kind of fund is a mixture of equity as well as debt.  Hybrid mutual funds bring in the best of both worlds. They tend to generate good returns at low risk. FAQs What are the different types of mutual funds? Large-cap mutual funds Mid-cap mutual funds Equity-linked saving schemes Low-risk options Hybrid mutual funds Which type of MF is best? The best type of mutual fund is the Hybrid mutual fund. Which MF gives the highest return? Equity-linked mutual funds are considered the mutual funds with the highest returns. Conclusion There will be miscellaneous financial goals you will be required to set if you are a family person. One among these might be to straighten up the roadmap to your child’s academic and career aspirations. The first step is calculating your expected expenses with the help of an education cost calculator. The calculator will help you draw your investment map to fulfill your child's aspirations. The earlier you invest, the more prepared you will be to make critical decisions as the moment arrives. DisclaimerMutual funds are subject to market risks. The previous performance of a fund is no guarantee of future success. Please reach out to an expert to know more about the schemes before investing.

If you don't find a way to make money while you sleep, you will work until you die.”   Warren Buffet Many people view saving and investing as the same thing. But they are not. You need to find a way to invest your money so that your money can work for you. There are many reasons to invest like planning for retirement, planning for your child's education, planning to bear inflation, or could be to save tax & create wealth, etc.  Let’s see what the reason for investing could be:  Financial Security – In the first place, people want to be financially secure so that they can protect themselves from unanticipated financial hardship.  Financial Independence – Your investments allow you to have financial independence as you reach retirement.  Building Wealth – People invest to create wealth from the process of saving and then investing the savings.   Attaining Any Specific Goal – Some people invest to achieve specific goals like child education.  You should always consider long-term investing to minimize your risk and let compounding work for you.  https://www.youtube.com/shorts/3-JVg9rhDbM Why should you invest in ELSS?  There are many investment instruments available in the market to save taxes like ELSS (Equity Linked Savings Scheme), PPF (Public Provident Fund), NSC (National Savings Certificate), and Tax Savings Fixed Deposits (FD). But there are many reasons to invest in the ELSS fund. ELSS fund is an effective way to create wealth and to save tax at the same time under one roof. ELSS funds are professionally managed funds.  ELSS funds invest in equity and equity-related securities. ELSS is the only mutual fund class that is eligible for a tax deduction. You can save up to ₹46,800 /- (tax deduction up to ₹1,50,000/-) in a financial year by investing in ELSS, which is covered under Section 80C of the Income Tax Act,1961. However, you can invest more than the designated amount; but there will be no tax benefit over ₹1.5 lac.  Let’s see what are the benefits of investing in ELSS:  Shorter Lock-In Period – ELSS has a short lock-in period of 3 years. Unlike the PPF, NSC & Tax Saver FD, all of which require a 5-15-years lock-in period.  High Returns – ELSS funds invest predominantly in equity and equity-related securities; the returns are higher than the other investment options with tax benefits. Historical returns show 12%-15% p.a. Higher returns will also help beat inflation.  Flexibility – There are two ways to invest in ELSS funds - SIP & Lumpsum. If you cannot invest in Lumpsum, then you can consider going with the SIP option.   Comparison between ELSS vs PPF vs Tax Saver FD vs NPS Investment ELSS PPF NSC Tax Saver FD Lock-in 3 Years 15 Years 5 years 5 Years Annual Returns Market-linked, historical returns show 12%-15% 7.10% 6.80% 6.00% Risk Market-related risk Low risk Low risk Low risk Minimum Investment ₹ 500 ₹ 500 ₹ 1,000 ₹ 100 Tax Benefit Yes Yes Yes Yes Maximum Deduction ₹ 1,50,000 ₹ 1,50,000 ₹ 1,50,000 ₹ 1,50,000 Premature/Partial Withdrawal Not Allowed Allowed only after 5th Year Under only special circumstances Not Allowed Taxation on Returns LTCG Applicable Tax-Free Tax Applicable TDS Applicable  ELSS of the Month 2023: Mirae Asset Tax Saver Direct Plan-Growth Objective The investment objective of the scheme is to generate long-term capital appreciation from a diversified portfolio of predominantly equity and equity-related instruments. The scheme does not guarantee or assure any returns.  Performance  Trailing Returns % Fund Benchmark Category 3 Years Annualized 26.71 20.15 18.29 5 Years Annualized 24.01 18.18 16.61  Invested Returns Accumulated Annualized Return (XIRR) Cumulative Return ₹ 7,30,000 ₹ 7,64,439 ₹ 14,94,439 23.99% 264.48%  Source: EduFund Note: Considering investing 10,000/month from Dec’15 to Dec’22 Suitability – For any investor looking to save tax on income through investment in the mutual fund.  Risk – High risk, as returns are totally dependent upon market risk. Returns are not guaranteed.  FAQs Why should you invest? Financial Security – In the first place, people want to be financially secure so that they can protect themselves from unanticipated financial hardship.  Financial Independence – Your investments allow you to have financial independence as you reach retirement.  Building Wealth – People invest to create wealth from the process of saving and then investing the savings.   Attaining Any Specific Goal – Some people invest to achieve specific goals like child education. Why should you invest in ELSS?  ELSS fund is an effective way to create wealth and to save tax at the same time under one roof. ELSS funds are professionally managed funds.  ELSS funds invest in equity and equity-related securities. ELSS is the only mutual fund class that is eligible for a tax deduction. Which is the best ELSS fund for 2023? ELSS of the Month 2023: Mirae Asset Tax Saver Direct Plan-Growth Conclusion When we have the best investment vehicle available to save tax then, why do we need to run for conventional tools to save tax? Every investor has a different risk appetite, but if anyone is ready to hold their investment for 15 years in an instrument like PPF then, he/she should consider investing in the ELSS funds that tend to give greater returns in the long term. DisclaimerMutual fund investments are subject to market risks. The previous performance of any fund is no guarantee of similar future performance. Please read the offer document carefully before investing.

One of the largest AMCs in India, DSP has been helping investors make sound investment decisions responsibly and unemotionally for over 25 years. DSP is backed by the DSP Group, an almost 160-year-old Indian financial giant. The family behind DSP has been very influential in the growth and professionalization of capital markets and the money management business in India over the last one-and-a-half centuries. DSP Mid Cap Fund  Investment objective The primary investment objective is to seek to generate long-term capital appreciation from a portfolio that is substantially constituted of equity and equity-related securities of mid-cap companies. From time to time, the fund manager will also seek participation in other equity and equity-related securities to achieve optimal portfolio construction.  Investment process    The DSP Mid Cap Fund has an investment philosophy that selects stocks with durable business, which are run by able managers and have high sustainable Returns on Equity. It focuses on small and mid-cap stocks that have a strong alpha generation potential, competitive advantage, and high cash flows.  Portfolio composition  The portfolio major exposure of more than 70% in mid-cap followed by 17% in small cap. The top 5 sectors hold nearly 48% of the portfolio, with major exposure to Pharmaceuticals and Biotechnology. Note: Data as of 30th Nov 2022. The bar graph shows the top 5 sector weightage of the fund’s portfolio. Source: dspim.com  Top 5 holdings Name Sector Weightage % Supreme Industries Ltd. Plastic Pipes Company 4.67 The Phoenix Mills Ltd. Retail Mall Developer 3.65 Atul Ltd. Chemicals Company 3.49 IPCA Laboratories Ltd. Pharmaceutical 3.36 Bharat Forge Ltd. Forging Company 3.28 Note: Data as of 30th Nov 2022. Source: ICICI Pru Performance over 16 years  If you would have invested 10,000 at the inception of the DSP Mid Cap Fund, it would be now valued at Rs. 77,034. This fund has outperformed the benchmark in all time horizons.  Note: Performance of the fund since launch. Inception date – Nov 14th, 2006. Source: Moneycontrol  The DSP Mid Cap Fund has given consistent returns and has outperformed the benchmark over the period of more than 16 years by generating a CAGR (Compounded Annual Growth Rate) of 14.37%  DSP Top 100 Equity Fund Read More Fund managers at DSP mid-cap mutual funds Resham Jain: Total work experience of 9 years. He joined DSP Investment Managers in March 2016 as Assistant Vice President of the Equity Income Team.  Abhishek Ghosh: Total work experience of 14 years. He joined DSP investment managers in September 2018 as Assistant Vice President of the equity team.  Vinit Sambre: Total work experience of 16 years. Vinit joined DSPIM in July 2007, as a Portfolio Analyst for the firm's Portfolio Management Services (PMS) division.  Jay Kothari - Total work experience of 20 years. Vice President & Product Strategist -Jay has been with DSP Investment Managers since May 2005.  Who should invest?  An experienced investor with a well-defined core portfolio.  Investors with high patience understand that this category of funds is associated with high risk.  Why invest?  Offers the potential to grow your wealth & 'earn big' returns if this theme does well (a high-risk, high-return strategy).  Can be a suitable choice for tactical allocation.  Horizon  One should look at investing and holding the investment for more than 7 years.  Investment through a Systematic Investment Plan (SIP) may help in tackling the volatility of the broader equity market.  FAQs What are the top five holdings of DSP Midcap Fund? The top 5 holdings of DSP Midcap Fund: Supreme Industries Ltd.The Phoenix Mills Ltd. Atul Ltd. IPCA Laboratories Ltd. Bharat Forge Ltd. Who are the fund managers for DSP Midcap Fund? Resham Jain Abhishek Ghosh Vinit Sambre Jay Kothari What has the performance of DSP Mid cap fund over 16 years?   If you would have invested 10,000 at the inception of the DSP Mid Cap Fund, it would be now valued at Rs. 77,034. This fund has outperformed the benchmark in all time horizons. Conclusion  This scheme offers exposure to mid-size companies that have a durable business run by able managers. Mid-sized companies like these can offer more growth potential than larger companies but at lower risk levels than smaller-sized companies. This scheme is best suitable for investors with a long investment horizon. 

To get started with family investments, you need to make a list of goals you want to invest towards. These will create different funds that can be utilized for your family's needs when those moments arrive. This might be your first time as an investor. Worry not for it is always a good time to start investing - be it as a collective unit or individually. However, if you are investing as a family, there will be some added responsibilities.  You can follow a few pro tips so as not to get confused when you have more than one investment to deal with.  Separate investments from savings  Investments are a lot like savings. We invest or save money for future use. But investments are a better method of securing your future because, unlike your savings, investments can generate more wealth by themselves. Thus, to enjoy the blessings of compounding, you are advised to separate your savings and investment. This means that you are required to not mix them up. It also means that you can have separate saving goals and investment goals. List down your saving goals and investment goals so that you do not lose sight of them. Keeping track of this will also help you decide how much money you can afford to invest depending on your income and expenditures.  Fixing your investment goals Once you can tell your investments apart from your savings, the next step is to compartmentalize your investments. Like savings, investments must also be divided according to different financial goals. That is to say, do not put all your money in one place with just one goal in mind. Divide your priorities and list them down. It is advisable to separate your personal financial goals from your family goals. Your investments can be directed towards creating funds for emergencies, healthcare, childcare, education, housing, retirement, and so on. These are the common needs of a family unit but you might have special requirements. Prepare your list of priorities accordingly.  Creating diverse investments  Simply compartmentalizing your investments is not enough; you are also required to diversify your investments. The trick is to invest in different places instead of investing in the same company stock or fund.  You must remember that, as a family, your investment goals can be quite distinct and miscellaneous. They vary not only in terms of the time you can give for the money to grow but also in terms of the amount you can invest in the first place. There are other factors like the level of risk involved and the percentage of returns you will enjoy in the long run. There are various kinds of mutual fund schemes you can opt for - large-cap equity funds, small-cap equity funds, mid-cap funds, debt funds, taxing saving schemes, and so on.  When you diversify investments, you play safe by ensuring that if you incur a loss on one investment, it will be balanced by the profits earned on another. Moreover, you can invest in International Equity funds to satiate goals like your child’s education abroad. This will ensure that you do not get affected by the market fluctuations of the Indian stock market. Also, your returns will have more value because a foreign currency like the US dollar is more stable. FAQs What should a family invest in? Investing as a family is important, from starting a PPF to SIP for mutual funds, you can explore a huge set of diverse options. Remember, investing is different from savings so make sure you do both as a family because there are many expenses to care for. What is the number 1 rule of investing? The number 1 rule of investing is to start early and never lose money. The power of compounding helps you save money and generate wealth for big goals like education, buying a house or starting a fund for travelling. What do 30 year olds invest in? There are many investment options for 30 year olds such as stocks, ETFs, mutual funds, etc. What are 3 good investments? Stocks, index funds, mutual funds and ETFs are 3 categories of investments that are considered good. Conclusion When you make investment decisions as a family, your kids learn from you. Thus, as a financial role model, your responsibility increases. As a married person, sharing investment goals with your partner as well as having separate individual funds is an example of healthy investing. This is the most organized way to make sure that one fund does not get compromised to fulfill a goal it was not originally meant for.  Similarly, try not to use up your life savings or retirement fund to send your kids abroad for a college education. Only prior well-planned investments can prevent such bewilderment from occurring. Investing systematically also means zero stress in your retirement life. Consult an expert advisor to get the right plan TALK TO AN EXPERT

In this blog, we have shared top tax saving options for salaried individuals. Every assessment year, the tax filing season serves as a signpost for anxieties and a frenzy among paid people. You seek tax-saving strategies since you must pay money for taxes for the relevant fiscal year. Top tax saving options for salaried individuals Following are the top saving options for salaried individuals:  1. Employees' provident fund (EPF)  The Employees' Provident Fund, or EPF, is one of the most well-liked ways for salaried individuals to save on taxes. The Central Board of Trustees oversees the Employees' Provident Fund and Miscellaneous Act of 1952, which established it. Under this plan, 12% of the employee's income is contributed by both, the company and the employee to the EPF. The employees earn interest at a specific rate on their contributions.  For salaried workers, tax savings through EPF take the form of tax exemption. The money accrued in an employee's PF account and any interest is tax-free. A salaried person's income plan is lacking without an investment in a Public Provident Fund, or PPF. You may start a PPF, a savings plan supported by the government, for as little as Rs. 500. Maximum investment allowed is Rs. 1.5 lakh. 2. Public provident fund (PPF)  PPF has the category of EEE or Exempt-Exempt-Exempt. This indicates that all contributions made to the fund, interest received, and maturity amount are tax-free. As a result, it's an excellent way for you to invest and save on taxes. 3. Equity-linked savings scheme (ELSS)  Consider ELSS if you're searching for financial solutions that let salaried workers deduct income taxes from their pay. One of the finest tax-saving choices for salaried people is the equity-linked savings scheme or ELSS. Investments in ELSS plans may be written off from an employee's taxable income under Section 80C. You should also be aware that it differs from all other mutual fund schemes because it qualifies for a tax deduction. For salaried persons, ELSS distinguishes itself from other tax-saving choices because of its dual benefit of relatively more significant returns that are partially taxable. For profits over Rs. 1,000,000 in ELSS returns after March 31, 2018, there is a 10% tax. 4. National Pension Scheme The National Pension Scheme, or NPS, is designed for those who wish to save for retirement but have limited tolerance for risk. Being directly governed by the central government, it is a secure alternative for investments and a great way for salaried people to save on taxes. Under section 80C of the IT Act, you may claim tax advantages for the donation. Additionally, you are eligible for further deductions of up to Rs. 50,000 under Section 80CCD (1b). 5. Health insurance Chronic health disorders have become more prevalent due to an increase in sedentary lifestyles, long work hours, bad eating patterns, and other environmental variables. Additionally, the rising healthcare expense has elevated health insurance to the status of an essential investment. It also offers tax advantages while protecting you and your family from health problems that might drain your bank account. Premiums paid under Section 80D are eligible for deductions. One of the tax-saving investments that have several advantages is health insurance. 6. ULIPs ULIPs, which stand for Unit Linked Insurance Plans, offer investment and insurance benefits. With the money you pay in premiums, you may give your family financial security and invest in various assets to earn returns via careful planning. ULIPs come under the EEE category. This means that you can save taxes* since the premiums paid, the returns earned, which are not subject to deduction, and the maturity sum are all tax-advantaged, provided certain requirements are met, and recent tax* standards are followed. 7. House rent allowance (HRA)  According to the relevant regulations, those who rent housing can take advantage of tax incentives for salaried employees. HRA, also known as House Rent Allowance (HRA), is not entirely taxed and is thus deductible from income for salaried employees. Because a portion of HRA is free from taxation under Section 10(13A) of the Income Tax Act of 1961, subject to certain restrictions, it is one of the tax-saving choices available to salaried persons. HRA is subtracted from the total income before calculating the taxable income. Additionally, you should be aware that HRA received from your employers is entirely taxed if you own your home and do not pay rent. It would help if you considered this fully to grasp how a salaried person might reduce their tax burden. 8. Gratuity It is tax-exempt under section 10 when given to an employee upon their death, dismemberment, retirement, or superannuation (10). The maximum exemption amount is Rs. 20,000,000. Remember that to be eligible for the payment, you must have served a minimum of five years in the company. Investments should be made early and frequently for effective tax planning. Your tax planning to-do list should also include studying your pay stub. Don't disregard the investment declaration form your company sent you; it contains a wealth of tax-saving information. FAQs How can I save more tax on my salary? There are many ways to save on taxes on your salary such as: National Pension System House rent allowance (HRA)  ULIPs Health insurance Equity-linked savings scheme (ELSS)  Employees' Provident Fund (EPF)  How much maximum tax a salaried person can save? Salaried individuals can save up to 1.5 lakhs in India on taxes. How can I reduce my monthly tax on my salary? Salaried individuals can claim up to ₹1.5 Lakh spent on such investments as tax waivers under Section 80C of the Income Tax Act. Consult an expert advisor to get the right plan TALK TO AN EXPERT