7 Ways in Which BLACK App Helps Save and Make More Money

With the intent to simplify finances for Indians, we recently launched the BLACK by ClearTax app. If you don’t have it on your phone yet, get it now from Google Play. By installing the BLACK app on your device, you get the following benefits:

Invest in mutual funds at 0% commission 

As per the Securities and Exchange Board of India (SEBI) mandate, every mutual fund scheme comes in two forms; regular and direct. Regular funds are those funds that come with a commission payable to the third party through whom you invest. This commission is not paid directly by the investors. Instead, it is paid by the fund house on behalf of investors through the higher expense ratio for regular funds. As there is a commission involved, the expense ratio or the cost of management will be higher in the case of regular funds. As the expense ratio is deducted from your returns, the returns offered by regular funds will be slightly lower than direct funds. This difference may seem nominal, but in the long run, it will have a significant impact on the overall return on your investment due to compounding. 

On the other hand, direct funds are those mutual funds that come with no commission payable to the third party. Therefore, the returns offered by direct funds will be slightly higher than regular funds. However, when the investment horizon is longer, the overall returns provided by direct funds and regular funds will be huge due to the power of compounding. On the BLACK app, we offer only the best-performing direct mutual funds, and you will not pay a rupee in commission. 

Earn up to 1.5% higher returns

Consider you invest Rs 20,000 a month for 15 years in both regular and direct schemes of a mutual fund plan. If the regular and direct funds offer annualised returns at 9% and 10%, respectively, then the following table shows the comparison of the amount amassed by both the schemes over different time frames:

Time	Investment (in Rs)	Regular Fund (in Rs)	Direct Fund (in Rs)
1 year	2,40,000	2,50,152	2,51,311
2 years	4,80,000	5,23,769	5,28,938
3 years	7,20,000	8,23,054	8,35,636
5 years	12,00,000	15,08,483	15,48,741
8 years	24,00,000	27,97,123	29,23,622
15 years	36,00,000	75,68,115	82,89,407

Note: The calculations in the table above are made at the rates specified in the paragraph before the table.

As we can see from the table above, the difference in regular and direct funds’ returns will be huge when the investment horizon is longer. Direct funds are known to offer up to 1.5% higher returns than regular funds. Therefore, to enjoy a higher return on investment, you have to invest in direct funds. On the BLACK app, you can invest in top-performing direct funds handpicked by our in-house experts.

Save up to Rs 85,800 in taxes

On the BLACK by ClearTax app, we offer a Tax Super Saver Plan. By investing in this plan, you can claim a tax deduction of up to Rs 1,50,000 a year under Section 80C of the Income Tax Act, 1961. This translates into tax savings of up to Rs 46,800 a year. It is a basket of top-performing direct ELSS funds handpicked by our in-house experts. 

We help you choose the best investment option to save taxes under Section 80C, which suits your risk tolerance and requirements. Apart from that, you get recommendations to save taxes beyond Section 80C. With the right use of the BLACK by ClearTax app, you can increase your tax savings to up to Rs 85,800 a year. 

Grow your wealth by investing in MF

BLACK by ClearTax app was launched to provide individuals with an efficient platform to grow their wealth. We offer only the best-performing direct mutual funds on the app. Our in-house experts have researched the top fund houses in the country and have shortlisted only the best-performing funds that help you grow your wealth over time. 

Simple and easy way to analyse your investments

We provide daily updates to help you track and analyse the performance of your investments. Apart from that, you will receive regular updates and statements of your portfolio. You will also find a dashboard that gives you all the necessary information to understand the performance of your investment with us quickly. 

Invest in readymade financial plans curated by experts

We have curated numerous mutual fund plans that help you grow wealthy over time. Be it saving taxes, retirement planning, securing your children’s future, or building an emergency fund, we have ready-to-invest plans to help you achieve any financial goal. You need to assess your requirements and choose the one that suits your profile. 

Learn about investing, principles and guidelines to get you started

If you are new to the investing world, we help you learn more about investing. You can understand investments better by reading the investment principles and guidelines on the BLACK app. We have outlined the procedure to choose suitable investments for various requirements and risk profiles. By following this guide, you can select investments that suit you. 

These are all some of the fantastic things that you get on the BLACK by ClearTax app. Apart from these, you can also file your ITR on the go, and it takes no more than 7 minutes.