2 replies on this article “Investment Guidance”

1. ashal jauhari says:

   January 2, 2012 at 10:36 pm

   Dear Ajit, in addition to all the useful info provided by dear justgrowmymoney, I want to know how much money you want to invest in your ELSS?

   Thanks

   Ashal

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2. justgrowmymoney says:

   January 2, 2012 at 3:21 pm

   My recommendation would be to go with Canara Robeco Tax Saver/Fidelity Tax Saver.

   If you are like most of the salaried class (sorry for that cliche, btw, I am also part of the same salaried class. We are in the same boat! Welcome Dude!) trying to make some investments just for the sake of showing 1 lac investment for tax saving I would caution you are a bit late to think that ELSS alone can help you. The reason is ELSS, like any other MF, is recommended to be bought in SIPs and not in bulk. So buying a bulk investment for 50k etc is not very fruitful, is what I mean {Ofcourse technically you can even buy 1 Lac ELSS on Mar 31st}

   SO my reco is this: Any Tax saver will have INR 5,000 as the minimum amount. Invest it right away. Do weekly SIPs of 1000 each in Jan, Feb and Mar 2012 so you would invest about INR 17,000 in 3 months. Any firm must deduct a minimum EPF of 780 each month. Hence your minimum EPF value will be ~INR 9,000 by Mar 2012. Thus 80C will account for 26,000 by taking these steps.

   I would recommend investing the rest of the INR 74,000 for tax purposes straightly in PPF and not rush them into ELSS immediately.

   If your EPF contributions are higher then you can tune the PPF contribution accordingly but in future years I recommend that you maximize PPF every year to the tune of INR 100,000. Lump sum is great at beginning of year else contribute every month about INR 8,500 to maximize PPF. Every portfolio MUST contain Debt and PPF is the cleanest bet for Debt.

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