Best Tax Free Mutual Funds. A systematic investment plan, more popularly known as sip, is a convenient method to invest in mutual funds. Investments into tax saving mutual funds are eligible for tax benefits of up to inr 1,50,000 under section 80c of the income tax act of 1961.
There are no restrictions on the amount that can be invested in elss. Municipal bonds, or muni bonds for short, are bonds.