When compared to traditional tax-saving instruments like PPF, NSC, or fixed deposits, Tax saving mutual funds (ELSS) stand out due to their high return potential. ELSS funds primarily invest in equities, which historically provide higher returns over the long term. Additionally, these funds come with a three-year lock-in period, which is significantly shorter than PPF’s 15-year commitment. ELSS allows tax deductions of up to ₹1.5 lakh per year under Section 80C, reducing taxable income effectively. Investors can also opt for SIP investments, helping them mitigate market risks through rupee cost averaging. Unlike fixed-income options, ELSS has no maximum investment limit, making it a flexible option for wealth creation. If you're looking for an investment that not only saves tax but also grows your money faster, ELSS is the right choice. Start investing today and enjoy the benefits of high returns and tax savings.
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