Consider ELSS Over Other Forms Of Traditional Tax Saving Options |
Posted: December 27, 2018 |
There are so many reasons for people to consider ELSS over any other forms of traditional 80C tax saving schemes. Equity Linked Savings Scheme comprises of lower lock-in period when compared to any other forms of tax saving options. The lock-in period in ELSS is just for three years. IF you compare it with PFF, then you will be shocked! PFF has a lock-in period of 15 years! On the other hand, six years is the lock-in period for National Saving Certificate. On the other hand, as ELSS is considered as an equity-linked solution, it has the right to provide higher returns when compared to other traditional tax savings, under the section 80C. Other reasons to follow: It is always important to remember that ELSS is equity-linked service, which makes the investment a bit risky. In general, there is going to be a big volatility of the current market price. So, if you are a plan to buy ELSS, then you might have to think about not getting an assured return like other kinds of tax saving options. People below the age group of 40 should have a good part of 80C consumed by none other than ELSS. Previously, people used to use 80C with life insurance policies and more. But, now things have changed, and good options are up in the kitty. Now, ELSS options are here, and this facility can be used well by young people, as well. Financial goals to be associated with ELSS investment: ELSS is known to be an equity-linked plan, and it is mostly related to long-term goals. There are so many financial goals, which can easily be settled with ELSS by your side. Some of those are:
Always go with the trend: When it comes to investment plans, it is important to go with the trend. If you fail to do so, it might give rise to some critical issues later. Even with the ELSS segment, it is important to check out the pros and cons before finally coming to a decision. Some people have less patience and would like to withdraw money after the three years lock-in period is over. This might help you a bit, but not much. You need to get the trend going in the best manner possible for the right result. Try to invest money for a minimum of 7 years if you are looking for higher returns. Ask the experts: Some financial advisers are always there to help you with financial help. Even if you are planning to invest in ELSS, make sure to log online and ask investment planners first for some help. It is only after their approvals that you can move forward and come to a decision for your help. RupeeRedee is a digital platform that helps customers borrow money for their short term needs at the click of a button.
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