Read in: 1mins, Published On , 16 Apr 2018 By ET Wealth
The strategy ensures no end-of-the-year burden on finances, also inculcates investment discipline
Tax payers often rush to invest in tax-saving instruments during the last few months of the financial year. Financial advisors and planners say that this is not the best way to invest in financial products to save on taxes. The process should start at the beginning of the financial year and continue through the year. Such a strategy ensures there is no extra burden on finances at the end of the year and such a year-round process helps one to inculcate investment discipline. ELSS floated and managed by mutual fund houses are among the best tax savings options available in the market. The best option, they say, is starting a Systematic Investment Plan (SIP) in an ELSS.
ADVANTAGES OF INVESTING IN ELSS
Option of growth and dividend
Option of monthly & quarterly SIP
Chance of better return over the long term
Lower expenses compared to other competing tax saving products
Inculcates investing discipline
Shorter lock-in (three years) compared to other similar products
Chance of making positive returns from day 1 from start of investing process
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