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POSTED BY ON October 23, 2012 11:56 am COMMENTS (3)
I am 22, proly will call myself a newbie in this field. I wish to invest in ELSS in order to get Tax exemption under section 80 C. I have a budget of 75K to invest what would be the best scenario for me. Going for a 100% ELSS (Growth) or any other ratio which means (G & E) both or something totally different
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Dear Tushar, what’s your current tax slab? Why only 75K you want to invest? why not less or more?
thanks
Ashal
Tushar,
If I was you, I won’t invest into ELSS at this stage. The rationale being :
1. ELSS are equity funds and you need to be really patient for several years before entering into ELSS.
2. From next year, Direct Tax Code may abolish all ELSS based tax deductions. Hence, this is just one last year which can give you the tax rebates.
3. For one off cases like this year, you should park your funds into PPF and continue to invest into PPF irrespective of Tax benefits.
regards
Banyan Financial Advisors
Its not a bad idea but you need to consider the locking period also. In the locking period you can not exit from the fund. Also you can opt for PPF which is secured and you get exemptation under 80C for it. Buts its definitely wise option to start in good MFs also.
But before that get term insurance and health insurance which is a must. The amount invested is also exempted under 80C. Also create a emergency fund which should be around 6 months of your monthly salary.