Yes you heard it right, tax saving fund is known as ELSS Fund.
It’s almost November Mid and we should start thinking about taxes. Many people are confused, how to do it there are lot of options available in the markets:-
– NPS
– PPF
– ULIP
– ELSS
Now which one to pick and can generate better returns.
Let’s discuss in detail:-
NPS has a lock in period till your age of 60 and generates returns around 9% as they contain some portion of equity.
PPF has a lock in of 15 years and generates returns around 7-8% p.a
ULIP is insurance and investment mixed product which has a lock in period of 5 years and generates similar return as PPF.
ELSS is an Equity Linked Saving Scheme which has a lock in period of only 3 years and can generate returns around 12-13% CAGR p.a
All the products is only available for tax deduction under sec 80C of income tax act and the limit is upto 1.5L.
For NPS you can additionally invest 50000 more.
What did you learnt? which is better ? Comment Down
ULIP? PPF? ELSS? or NPS?
– Pooja Patel, CFP
2 Comments
ELSS
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