Compare products under lock-in duration, expected rate of return, safety, associated risks etc.
During the last few months of fiscal year, a large number of investors try to find out which tax saving investment they should opt for. For such tax payers, options galore: From ELSS from mutual fund houses to approved bank FDs, PPF, NPS, insurance products, post office saving schemes etc. To select the best
product, one should look at parameters like duration of lock-in (that is liquidity), expected rate of return, safety of investments, associated risks and ease of diversification. According to financial planners, ELSS from mutual fund houses is found to be the best option for a majority of tax payers looking to save taxes.
ADVANTAGES OF INVESTING IN ELSS
- Better returns over the long term
- Lower fees compared to most other tax saving products
- Shorter lock-in (three years) compared to other similar investment products
- Monthly & quarterly SIP possible
- Inculcates investing discipline
- Option of growth and dividend
- Option of investing through online channels for ease and convenience
By utiswatantra
