Should I invest in ABSL Frontline Equity Fund to save taxes?
To get the tax rebate under section 80C of income tax you need to invest into products which qualify under this section. ABSL Frontline Equity Fund falls under the large cap category and does not qualify under section 80C thus it shall not help you get any tax saving benefits.To avail tax saving benefits under this section you will need to invest in mutual funds which fall under the ELSS (Equity Linked Saving Schemes) category. You can venture into Axis Long Term Equity Fund from the ELSS category which has a strong track record and is managed by an experienced fund manager. The fund will act like a flexi cap fund but is currently skewed more towards large caps.Investing in ELSS via the SIP route is the best way to save tax and create long-term wealth. Please note you will be able to avail tax saving benefits on investments up to Rs 1.5 lakh only per financial year, also there will be a lock-in period of 3 years but you can continue to stay invested after the lock-in period as well. Equities are very volatile in nature thus keep in mind to have a time horizon of 5 years and above.