My taxable income is $60000/-Why are the investment options to reduce tax?

If you are asking what not why there are several options. For the bond part of your investments, look at municipal bonds from your state (if you pay a state income tax). No state and no federal tax required on the interest, but some on the capital gains. Some muni bonds are subject to the alternate minimum tax. Check with the fund you are thinking of. For the equity side of your investments, look at individual stocks that are blue chip growth oriented with a low "qualified for the 15% rate" dividend yield. Do not buy trusts, their dividends are not "qualified." Look for mutual funds that have a low turnover ratio (high ratio means hidden extra expense to you and high short term capital gains taxes), & low dividend yield. Some may have "Tax-managed" in their name. Index funds are good to reduce taxes as their turnover is usually very low. If there is an investment you want that is not tax efficient, and that taxable income is earned income, you can put it into a ROTH IRA (paying taxes on the contribution now, but all earnings, dividends, interest, capital gains are tax free). A regular IRA and 401k 2 other ways to invest and defer taxes until you retire and your tax bracket is lower.