What are the benefits of investing in tax saving funds?

If you are yet to make investments to save tax, we recommend that you get started with tax saving funds.
Here are some benefits of investing in tax saving funds on PhonePe:  

• Save up to ₹46,800: You could save up to ₹46,800 in tax per financial year, depending on your tax bracket.
• Create wealth: When you invest in tax saving funds, you earn higher returns in the long term when compared to other tax saving options such as a bank fixed deposit (FD), National Saving Certificate (NSC) or Public Provident Fund (PPF).
• Lowest lock-in period:
  Tax saving funds have the lowest lock-in period of 3 years as compared to:
  Bank FD: 5 years
  NSC - 5 to 10 years
  PPF - 15 years
  Note: Lock-in period refers to the period of time during which you can’t sell the units you’ve invested in.
• Professionally managed funds: Fund managers do the research for you and carefully choose companies to invest your money in, and also continuously monitor your investments. 
• Diversified investment portfolio: Fund managers will invest your money in companies across business sectors to diversify your investment and minimise the risk, if a company or sector doesn’t perform well.
  For example, if you invest just ₹1,000, you can purchase shares of as many as 40 top companies across different business sectors. So, even if a company doesn’t perform well in the stock market, you’re protected from the risk of loss.

Learn more about tax saving funds.