Can I use a Returns Calculator for tax-saving mutual fund investments?

Yes, you can use a Returns Calculator for tax-saving mutual fund investments, particularly for Equity Linked Savings Schemes (ELSS). These funds not only offer potential capital appreciation but also provide tax benefits under Section 80C of the Income Tax Act in India.

When using the calculator, consider:

• The amount you invest in the ELSS.
• The duration of the investment (a minimum of 3 years is required to avail tax benefits).
• The expected annual return rate.

For example, if you invest ₹1,50,000 in an ELSS for a duration of 10 years at an expected return of 15%, the calculator will show the total value of your investment, helping you understand both the potential growth and tax benefits. This makes it easier for you to plan your investments effectively.

Using a returns calculator specifically designed for tax-saving investments can also help you visualise how your investment can grow while simultaneously providing tax relief.