Investor assets in India's tax saving mutual funds reach 2-year high
Assets under management of India's equity-linked savings schemes surpassed Rs 25,000 crore.
It is the highest level since April, 2011.
The schemes offer tax benefits to investors.
According to India's mutual fund industry body AMFI, the total AUM of ELSS, or tax-saving funds, stood at Rs 25,069 crore at the end of January 2013. .
The ELSS funds generally see significant inflows between December and March, as investors look to invest in schemes offering tax benefits as part of their fiscal-end tax planning activities.
Investments up to Rs 1 lakh in ELSS funds by eligible investors qualify for tax deduction under Section 80C of Income Tax Act. An investment of Rs 1 lakh in ELSS funds can help an investor save up to Rs 30,900 from his/her total tax liability.