Several MNCs in India now give year-end bonuses to the employees based on their performance. As the bonus is over and above the monthly salary, it is natural for a lot of people just to go ahead and splurge it on vacation or purchase the latest gadgets.

While it definitely is up to you how you want to spend your bonus, you can invest the bonus smartly for achieving important financial goals. But what should you select? Which investment option offers maximum benefits and flexibility? Let us have a look-

Where to Invest Your Year-End Bonus?

The best option to invest your year-end bonus is mutual funds. Based on your financial goals, investment duration, and risk appetite, you can select a mutual fund scheme and make a lump sum investment in it.

If you do not want to invest the entire bonus at once, you can also go for the SIP option and invest a fixed amount in the fund of your choice every month. But why mutual funds are a good investment for your year-end bonus? Here are some of the top benefits they offer-

Why Invest in Mutual Funds?


  1. Different Types of Schemes to Choose From
  2. With mutual funds, you get to invest your money in a fund that best suits your personal profile. There are equity funds, debt funds, hybrid funds, liquid funds, income funds, and more to choose from. Based on what your investment objective and risk appetite are, you can easily select a fund for your bonus investment. 

  3. Professional Management
  4. If you are looking for what is the benefit of investing in mutual funds, one of the most important is professional management. There are fund managers and a team of analysts and researchers for every mutual fund. These experienced professionals make investment decisions on your behalf to help the investors earn better returns while keeping the risk to a minimum.

  1. Tax-Savings
  2. If you are looking for ways to reduce your tax burden, there are also tax-saving funds available. For instance, the mutual fund tax benefit is available with ELSS (Equity-Linked Savings Scheme) funds. These funds are eligible for tax deduction under Section 80C. The funds have a lock-in period of just 3 years, which is considerably lower than other tax-saving investment options.   

Best Way to Use Your Year-End Bonus

Try to understand the benefits of mutual funds in detail, and you will know why they are the best option for investing your year-end bonus. Once you have made the decision, look for a reputed AMC that offers many different types of mutual funds to start investing.

Click here to explore various mutual funds we offer.

DISCLAIMER

The information contained herein is generic in nature and is meant for educational purposes only. Nothing here is to be construed as an investment or financial or taxation advice nor to be considered as an invitation or solicitation or advertisement for any financial product. Readers are advised to exercise discretion and should seek independent professional advice prior to making any investment decision in relation to any financial product. Aditya Birla Capital Group is not liable for any decision arising out of the use of this information.



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