The crash of stock market in the month of March was a good opportunity for investors to opt for Equity Linked Saving Scheme because unit price of those schemes shall also be lower on account of crash in stock market. That is not the only reason for recommending ELSS as investments. The other reasons are
Those readers who have still trying to search for an investment option for tax savings, can get deduction u/s 80C which by virtue of clause 2(xiii) gives deduction up to Rs 1 lakh.
The PPF or NSC gives you risk free returns but they have locked in period of six years, whereas ELSS has only 3 years of lock in period. SO, after three years only you can get your wealth back
The prediction about Indian economy makes a case for long term investment in equity. Therefore there is likelihood of getting much better return out of investment as the equity market is set to go up in near future again. The tax free gain will be more than the PPF or NSC. While the PPF or NSC gives you 8 % return, the return from ELSS on average annual return was more than 30% in last one year.
The research team at IndianMoney.com comprises of certified and experienced professionals who share the company's vision to make every Indian financially literate by equipping every Indian with right and unbiased advice. IndianMoney.com research team provides newsletters, articles, videos and FAQs on various financial products and concepts only to help you make wise financial decisions.
Subscribe to our Youtube Channel
Hello friend! I am your personal financial advisor. By the end of this interactive session, I will help you to plan yours and your family's finances to ensure a better future.
This is to inform that Suvision Holdings Pvt Ltd ("IndianMoney.com") do not charge any fees/security deposit/advances towards outsourcing any of its activities. All stake holders are cautioned against any such fraud.