Around April most people seeking for tax saving option and ended up buying product like PPF or Money Back Insurance plan which might the not need at all. Better planning ahead could give you better option to save tax also get good return on your money. Equity Link Saving Schema(ELSS) is the finest way to save tax and generate handy return.
ELSS Mutual Fund investment give you tax benefit under Section 80-C of the Income Tax Act. Also ELSS funds come with locking period of 3 year which minimum of any tax saving option available in India.
ELSS Fund just not tax saver but also great option to generate good return over the period of time.
Let have look of ELSS fund return vs. PPF return.
|Type||SBI Magnum Tax Gain Schema||PPF|
|Date of Investment||01-05-2000||01-05-2000|
|Return %||Market Driven||8.8 %approx. (average of 17 years)|
|Current Investment value||139160||31946|
|Total Return on Investment||1391.6%||319.6 %|
Just look at the numbers, ELSS beat PPF by huge margin. With SIP option one can reduce the amount of risk in ELSS and generate better than average return. There was time when PPF come with 12% return but now it’s come down to 8.1. So investing in PPF now is not wise.
Reliance Tax Save Fund(G) is our pick from all fund. Its high performance fund in ELSS category. One can start with minimum 500 INR SIP in ELSS fund. Investor can directly invest in Reliance MF from link: Reliance Mutual Fund. Start your journey of Investment with Tax saving today.
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