POSTED BY May 28, 2012 9:42 am COMMENTS (7)ON
My objective is to save tax and at the same time invest in equity. Can you suggest me options?
But, I understand, most probably, it will not save tax from next year. Hence my questions?
a. I would like to first get the clarity on 3 yrs lock-in. I believe, it means that I cannot redeem my units prior to 3 yrs. However, I do not need to pump-in my funds for 3 consecutive yrs. For eg, if I start a SIP and continue it for first 6 months and then stop the SIP, I would still enjoy the tax benefits. Pls. let me know if my understanding is correct?
b. Since, it has 3 yrs lock-in, what would be the impact on ELSS after one year, assuming that by then they’ll not continue to save tax. My hunch, is that people will start redeeming them (whose lock-in period has already been passed) and would then impact fund manager decision making based on the reducing AUM of the fund. Or at the very least, people will avoid to pump more funds into them, as there are many other equity schemes which have done well over ELSS funds. Pls. guide.
2. Rajiv Gandhi Scheme – which has been recently introduced. I think, once it is tied to the mutual funds, as suggested by SEBI, then only it’ll be a good instrument. Till then, I personally would like to stay away. Is there anybody here who is investing in it?
3. ULIPs – I would never buy them.
4. What else? Any suggestions?