A mutual fund is an investment scheme that pools money from various investors and invests it in equities and equity-related securities. These funds have a lock-in period of three years, meaning that the invested money cannot be withdrawn before that time. Additionally, these schemes also offer tax benefits under Section 80 C of the Income Tax Act. This means that investors can save on their tax liability while also potentially earning returns on their investment. So, not only can mutual funds be a great way to diversify your portfolio, but they can also offer tax advantages.
