InvestorQ : I am a government employee & want to invest in Mutual funds?
Purvesh made post

I am a government employee & want to invest in Mutual funds?

Answer
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1 year ago


Any individual residing in India, whether government employee or otherwise can make an investment in mutual funds. Mutual funds in India are governed by the Securities and Exchange Board of India (SEBI), which regulates and monitor the functioning of all the intermediaries in the stock market, including mutual funds. SEBI has formed strict regulations in this regard and keeps a close eye on major transactions happening in the Indian stock market.

So, yes it is absolutely legal. Salaried employees, whether government or otherwise can also avail deduction under section 80C of the Income Tax Act 1952. The deduction is available for investment in Equity Linked Savings Scheme (ELSS) of mutual funds. The maximum deduction available under the said section is Rs.1,50,000/-