Atypical sales pitch: Sir, we are selling an open-end mutual fund (MF) which will give tax-free returns. The scheme returned 15 per cent last year.
Ideally, your answer should be: The only MF scheme that can give me tax-free returns is an Equity-Linked Savings Scheme (ELSS) but it has a lock-in period of three years.
Most of us don't ask these questions and get hustled into buying something we don't know much about. Worse, sometimes, investors are sold insurance schemes as MF schemes.
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