Individuals looking to save on taxes while potentially earning higher returns should consider investing in Tax saving mutual funds. These funds are ideal for salaried professionals, first-time investors, and anyone under the old tax regime wanting to utilize the ?1.5 lakh deduction under Section 80C. Since tax saving mutual funds invest in equities, they suit investors with moderate to high risk tolerance and a long-term investment horizon. Their three-year lock-in and market-linked returns make them both a tax-saving and wealth-building option.