One tax-saving product that investors, especially younger ones with long investment horizons, should opt for is equity linked savings schemes (ELSS), popularly known as tax saver funds.
These are equity funds that also enable you to get tax deduction under Section 80C (maximum limit Rs. 1.5 lakh). Since these are equity-oriented schemes, they carry the potential to offer high returns. Over the past 10 years, the direct plans of these funds have given a category average return of 15.2 per cent. The best performing fund has given 22.1 per cent. Even the worst performer has given 12.5 per cent. No fixed-income product can give you such returns.
Another advantage of ELSS is that these funds come with a lock-in of only three years—the shortest among all tax saver instruments.
Investors must, however, be prepared for volatility in these equity-oriented products. In 2018, for instance, they had given a category average return of -5.1 per cent. That year the worst-performing fund was down -19.9 per cent. Even in 2022, the category gave a tepid return of 3.2 per cent.
Esta historia es de la edición March 2023 de Investors India.
Comience su prueba gratuita de Magzter GOLD de 7 días para acceder a miles de historias premium seleccionadas y a más de 9,000 revistas y periódicos.
Ya eres suscriptor ? Conectar
Esta historia es de la edición March 2023 de Investors India.
Comience su prueba gratuita de Magzter GOLD de 7 días para acceder a miles de historias premium seleccionadas y a más de 9,000 revistas y periódicos.
Ya eres suscriptor? Conectar
Thematic Fund Or Sectoral Fund, Which Fund Suits You?
A thematic fund is a type of mutual fund that focuses on investing in companies based on specific themes or trends.
Be Kind To Your Kidneys
The kidney is a vital organ in our body which is four inches long and two and a half inches in width.
Have You Included A Passive Fund In Your Portfolio Yet?
The assets under management (AUM) of passive funds recently crossed the Rs. 10 lakh mark. While a significant portion of this money comes from institutional investors, such as the Employees Provident Fund Organisation (EPFO), these funds are also gaining popularity among retail investors.
Mutual Fund
1. SEBI allows mutual funds to buy and sell credit default swaps (CDS)
Insurance News
1. The finance minister has launched a new NPS scheme named NPS Vatsalya
ASK THE EXPERT
Dear Sir, I attended your webinar on post-retirement financial planning. As advised by your good self, I invested in NPS after retirement.
Market Mystery: Some Important Investing Lessons from Fund Managers Themselves
Mr. Mahesh Patil is the Chief Investment Officer (CIO) of Aditya Birla Sun Life AMC Limited. As the CIO Mahesh oversees INR 3 lakh crore of assets under management.
How to make a cautious entry into equity funds during a bull market
The number of mutual fund folios has been rising, with flows via the systematic investment plan (SIP) route reaching new highs.
All that you need to know to kickstart your retirement planning process
We all enjoy planning for the future. It’s a good idea to plan ahead of time for anything, from the day’s activities to a vacation.
5 Steps To Achieve Your Financial Goals
From a beach house, a Jaguar, to traveling the world – there are many things in life that we want to accomplish.