The Art of Tax-Conscious Investing

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Savers save. They accumulate wealth, and at that they stop. It is widely perceived that they like to play it safe and hence withhold themselves from exploring further possibilities through investments. Of the many hazards that the reluctant savers associate with investment, lies the perceived burden of taxation linked to investments.

Savers could be in for a surprise, if they only knew. Investors, having realized the many benefits that investments bestow, explore structured avenues that effect manifold returns accompanied by tax-benefits. It is time savers realize that investments lower their tax liabilities.

The CAMS objective: Converting Savers to Investors

CAMS, as an integral part of the Indian Financial infrastructure with more than 25 years of service, has built a credible reputation as a Transfer Agency to the Asset Management Industry of India. A trusted service partner to 8 out of the top 10 Asset Management Companies (AMCs) in India, CAMS remains the market leader with a substantial market share of over 62%, managing assets worth 141 billion USD, as recorded in the quarter ended June, 2016. CAMS believes that its core business purpose lies in converting savers to investors.

India as a growing economy with a huge demand and market potential has the scope to leverage secular opportunities, given its current status. In line with the same, the Indian Government is effecting several progressive changes in the norms of the financial landscape, allowing for several regulatory blessings that are redefining the way Security markets operate; these changes, in turn, serve to bring more convenience to investors.

With the advent of Aadhaar authentication for authorization of transactions, financial services and Unified Payment Interface, presence-less, paper-less investment transactions have become a succinct reality.

As a leading RTA, CAMS has adapted to and is leveraging upon these constructive changes impacting the India Investment scene. As services partner to 17 Mutual funds in India, CAMS facilitates investments into Mutual funds, that are supported through Investor Service Centers present in 270+ locations pan India.  Those who prefer digital investment interfaces could explore myCAMS, an investment app from the house of CAMS, designed to deliver digital convenience to investors in Mutual funds. Either way, savers who stand shy of investments, owing to misconceived taxation burden or transaction procedures, are encouraged to step forth and discover the perks of investing in Mutual funds through CAMS.

Mutual funds: Investment routes aligned to Tax-planning

Mutual Funds offer investors multiple choices of schemes for short term, medium term and long term investment to meet the investment horizon and build diversification via liquid funds, debt funds, and equity funds. In addition, Mutual Funds offer liquidity, tax benefits, and varied formats of investments such as systematic investment, systematic transfers and even systematic withdrawal. Dividend income and Long term capital gains are tax free for investors in Equity schemes.

Mutual Fund ELSS (Equity Linked Savings Schemes) have emerged as widely preferred investment options, that not only ensures high ROI, but also drive home the benefits of tax-saving under Section 80C of Income Tax Act.

ELSS stand out as an affordable, transparent investment arrangements that provide high liquidity. According to Section 80C of Income Tax Act, 1961, investment up to INR 1 lakh in ELSS stands to be deducted from the overall taxable income.

The schemes are flexible – there is no obligation for the investor to stay invested in ELSS beyond its stipulated time, unlike other comparable investment options. Should the investor prefer to look at ELSS beyond tax benefits, they could opt to hold the same for a longer term and realize how ELSS serve to multiply their wealth manifold.

For details on Mutual funds, ELSS and more, click here.

Invest for India

It is common knowledge that, India, as an economy with plenty of headroom for growth, needs Capital. With a quiet confidence tempered by vast experience and deep expertise garnered over 28 years of conducting business with great oversight in a regulation intensive environment, CAMS beckons savers to explore and participate in mutual funds and other investment options, and release more assets that would serve to fuel the growth of the nation.

Additional information: In the interest of Advanced Tax payers

To a law-abiding, conscientious tax payer, advanced tax payment facility is an advantage to reckon upon. This year, the second instalment of advanced tax could be paid on or before 15 September, 2016. For those who had missed the first instalment, that had to be paid by 15 June, 2016, there is a provision to pay the first instalment along with the second, with added interest on due taxes.

 

About CAMS:

CAMS Logo High Resolution

Computer Age Management Services (CAMS) is India’s premier Mutual Fund Transfer Agency serving over 62% of assets of the industry across 16 Mutual Funds. Leveraging superior technology, CAMS brings several innovative services to Mutual Fund investors and distributors. CAMS is also a service partner to leading Insurance Companies, Banks, NBFC’s and Alternate Investment Funds. To know more visit www.camsonline.com

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Published by

Sudarshan Ranganthan

Breaths Investments, Suggests Wealth Creation Ideas, Lives on Law Of Attraction

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