Tax-efficient investments, like tax-managed funds, exchange-traded funds (ETFs), treasury products, and municipal bonds, can significantly reduce tax liabilities when strategically used., For instance, 529 accounts will allow you to save after-tax money, but get tax-deferred growth potential and federal income tax-free withdrawals when used for qualified expenses including college and, since 2018, also up to $10,000 per student per year in qualified K–12 tuition costs., Tax-saving investments / Taxes. Tax-saving investments. Sometimes saving money on taxes is as easy as choosing the right types of investments. 4 minute read. Save , , , .