mutual funds savings

This query is : Resolved

Querist : Anonymous

Querist : Anonymous (Querist)

06 March 2010 Kindly clarify the following
1) Under what type of mutual funds Can we save 1 lakh under sec 80c. Which Govt. bank (20 nationalised bank) mutual fund has given more benefit or private co. has given more benefit.
2) If deposited 1 lakh under 5 years FD in Govt. Banks, then should accrued interest be taken every year as income or should it be taken when the FD matures. Kindly clarify urgently

Rasesh

Rasesh (Expert)
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06 March 2010 Investment in three year Tax Saver Mutual Fund (which are also known as ELSS) is eligible for 80C. www.moneycontrol.com provides ranking of mutual funds. You may refer the site for your own analysis of where to invest.

The accrued interest in the FD should be considered every year instead of considering the interest at the end of the tenure.