A Post on Explaining ELSS

This is the post that I will try to put up in lay man language as most of my friends, relatives really wanted to blogunderstand why to invest or not to invest money under ELSS for section 80C.

So where all you can invest to save tax if you are salaried employee, Insurance, PPF, NSC, ULIP,

Well I will concentrate on the ELSS – Equity linked Savings Scheme

ELSS is a type of mutual fund, where majority of the corpus is invested equity and equity related products.  Investment in ELSS has lock in period of 3 years and it has tax benefits. ELSS are not at all risk free , there is no fixed return , ELSS are open-ended and investor can subscribe to fund on any given day.  Continue reading “A Post on Explaining ELSS”

Investment, Mutual Funds, ULIPS – The season of 80 C

#Fact: Insurance is not an investment: A good insurance policy is gold when it comes to risk protection.blog

It’s the time of the financial year when the deceleration done by the employee need to be submitted under section 80 C .This is also the time when maximum ULIP policies are sold, mis-sold  and resold .  Let’s explore the reasons

Unit Linked Insurance Policies (ULIPs) as an investment avenue are closest to mutual funds in terms of their structure and functioning. As is the case with mutual funds, investors in ULIPs is allotted units by the insurance company and a net asset value (NAV) is declared for the same on a daily basis.

Similarly ULIP investors have the option of investing across various schemes similar to the ones found in the mutual funds domain, i.e. diversified equity funds, balanced funds and debt funds to name a few. Generally speaking, ULIPs can be termed as mutual fund schemes with an insurance component. Continue reading “Investment, Mutual Funds, ULIPS – The season of 80 C”

Systematic Investment Plan: SIP

As the Year end approaches people start inquiring about the tax saving plans and want to invest their money now to save blogtax.  I have been approached by many of my friends and colleagues, they want to do everything now SIP, ELSS, Insurance?

Can you do financial planning in adhoc mode? For me it’s a big no. People end up buying either the most misssold ULIPS or may be some insurance plan.

The Term Financial planning is mis-directed, mis-guided and mis-selling lead to many such situations. I always encourage SIP between my fellow mates, whosoever asks me to invest the savings.

Systematic Investment Plan is an approach to investing within Continue reading “Systematic Investment Plan: SIP”

Tax Planning: Few Investment Tips

As we heading towards the end of financial year 2012-2013, there is no room for procrastination now. If you do not plan your taxes now, you will end up paying a hefty sum.

taxsaveAs a late planner, you will not get the maximum benefits from tax-savings instruments due to the notional loss in investment, but you can minimize the damage. For most of the people “Tax-Saving” brings to mind life insurance, Equity-linked saving scheme, NSC etc. under section 80-C of the Income-Tax Act. An individual can claim tax deductions of upto Rs. 2 lakh under 80C.

There are quite a few options you can opt for tax savings:-

  1. Life Insurance Premiums.
  2. Contributions to Employees Provident Fund.
  3. Public Provident Fund.
  4. NSC (National Savings Certificates).
  5. Unit Linked Insurance Plan (ULIP).
  6. Repayment of Housing Loan (Principal). Continue reading “Tax Planning: Few Investment Tips”