POSTED BY February 20, 2012 3:47 pm COMMENTS (3)
ONDear Sir,
I have already bought NSS from POST of 30,000/- & want to invest 50,000/- more for tax saving purpose. But as the locking period for NSS is for 6 yrs, I feel its too big. So Kindly guide me as to whether there are any other options with about 3 yrs of locking period.
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Dear Jeetendra, may I know your income tax slab & your current FY’s gross taxable income?
Thanks
Ashal
Your 3 years criteria is not a good way to hunt for your tax saving investments, specially when 31 March is so near. I would not suggest ELSS Mutual funds for this requirement.
All other tax saving investments would require you to hold on for around 5+ years. Best in your case would be to contribute to PPF – 15+ years lock in.
Regards
BFA
Equity MFs – called ELSS – have a 3 year lock in period. I would recommend ELSS only if you had spread out the investments over a period of 1 year. Now with barely 6 weeks to go you will be forced to invest more each week (Dont do lump sum, do in SIPs). Invest around 25k here and another 25k in PPF.
If you need this money in about 3 years for a future expense it is futile to dump it in MFs.
In general NSC is an very tax inefficient instrument. Investing for the long term will entail blocking funds for extended periods of time (like in PPF-15 years locked) but the effort is worth it