Read in: 1min, Published On , 24 Oct 2016 By ET Wealth
We are already halfway through the current financial year. In another three months, we will have to submit proof for tax savings for the year. In our rush to comply with the tax saving rules, often we make mistakes that could impact our finances for several years. The year-end rush could also temporarily destabilise your monthly budget. So it’s better to start early. Ask any qualified and experienced financial planner or advisor, ELSS is likely to be the preferred tax saving instrument for most.
These are mutual fund schemes approved by the tax authorities for saving on taxes under 80c of Income Tax Act and managed by fund houses.
ADVANTAGES OF INVESTING THROUGH ELSS
THESE FUNDS CHARGE THEIR CUSTOMERS A LOWER FEE COMPARED TO MOST OTHER TAX SAVING PRODUCTS
ELSS OFFER BETTER RETURNS OVER THE LONG RUN
YOU CAN START AN SIP IN ELSS
SIP IN ELSS BRINGS IN INVESTING DISCIPLINE
SIP IN ELSS HELPS YOU TO SPREAD YOUR TAX SAVING PROCESS OVER SEVERAL MONTHS
YOU CAN OPT FOR DIVIDEND AND GROWTH OPTIONS IN ELSS
PEOPLE WHO ARE LOOKING FOR SOME EXTRA INCOME ALONG WITH TAX SAVINGS, MAY OPT FOR DIVIDEND OPTION
ELSS HAVE LOWER LOCK-IN OF THREE YEARS, COMPARED TO OTHER TAX SAVING INVESTMENTS
FOR PEOPLE WHO HAVE LONG YEARS OF WORKING LIFE AHEAD OF THEM, IT’S BETTER TO OPT FOR GROWTH OPTION
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