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Advantages and Disadvantages of ELSS
IndianMoney.com Research Team | Posted On Wednesday, April 08,2009, 12:15 PM
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Advantages of ELSS over NSC and PPF
Main advantage of
ELSS is its short lock-in period. Maturity period of NSC is 6 years and PPF is 15 years. Since it is an equity linked scheme earning potential is very high.
Investor can opt for dividend option and get some gains during the lock-in period
Investor can opt for Systematic Investment Plan
Some ELSS schemes also offer personal accident death cover insurance
Provides 30 to 40% returns compared to 8% in NSC and PPF
Disadvantages of ELSS
Risk factor is high compared to NSC and PPF
Premature withdrawal is not allowed but it is allowed in other instruments in some specific conditions
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