Amu_Ke_Fundye Mutual Funds What is a Mutual Fund? A mutual fund is a professionally-managed trust that pools the savings of many investors and invests them in securities like stocks, bonds, short-term money market instruments and commodities such as precious metals. Investors in a mutual fund have a common financial goal and their money is invested in different asset classes in accordance with the fund’s investment objective. Investments in mutual funds entail comparatively small amounts, giving retail investors the advantage of having finance professionals control their money even if it is a few thousand rupees. Mutual funds are pooled investment vehicles actively managed either by professional fund managers or passively tracked by an index or industry. The funds are generally well diversified to offset potential losses. They offer an attractive way for savings to be managed in a passive manner without paying high fees or requiring constant attention fr
AMU_KE_FUNDYE Section 80E Income Tax Deduction or Interest on Education Loan An Education Loan helps you not only to finance the foreign studies but it can save a lot of tax also. If you have taken an education loan and are repaying the same, then interest paid on education loan is allowed as a deduction from the total income u/s 80E. However, the deduction is provided only for interest part of the EMI. There is no tax benefit for the principal part of the EMI. Essential Conditions for Claiming This Deduction Are: 1. Who can claim this deduction? Only an individual can claim this deduction. It is not available to HUF or any other kind of taxpayer. And the loan should be taken for the higher education of self, spouse or children or the student for whom the individual is a legal guardian. Thus parents can easily claim this deduction for the loan taken for the higher studies of their children. 2. From where the loan should be taken? The loan should be taken from