WHAT ARE ELSS ORTAX SAVER MUTUALFUNDS

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WHY YOU NEED TO INVEST?

Lifestyle the main culprit for your problems, in these days as very high inflation year on

year, so don't depend on the inflation data released by Government every month alone.

Apart from inflation data which was on an average stayed around 8-9% in the last two

decades there are many other inflation data which affects the normal family namely,

Inflation,

Education Inflation,

Medical Inflation,

Lifestyle Inflation

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WHERE SHOULD YOU INVEST YOURMONEY FOR TAX SAVING?

Let us look at the tax saving options available in India,

Tax saving fixed deposits,

Tax saving Government Bonds,

PPF,

KVP,

Post office fixed deposits,

ULIPS,

Life Insurance,

ELSS or Tax saving mutual funds

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ELSS OR TAX SAVING MUTUAL FUNDS;

Advantage of Tax saver mutual funds;

1)Better returns than other investment products

2)Tax exemption for the invested amount

3)Returns are completely tax free after 3 years

4)No compulsion to take your money out after 3 years

5)Benchmark returns are set as 12%, but best performing ELSS funds have beaten those

Disadvantages of Tax saver mutual funds;

1)Returns are not assured

2)Stock market risk as it may fall after 3 years though there may be intermittent new

heights

3)Not suitable if you are investing only for 3 years

4)Past returns doesn’t guarantee the same

5)Worst performing fund returns have been in single digit

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HOW TO CHOOSE THE BEST ELSS?

Let us see some of the aspects of finding the best funds,

Expense ratio,

Higher Alpha;

Beta;

Credit Rating;

Portfolio of ELSS fund;

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Options to invest are,

1) If you want to invest bulk of your section 80-c in

ELSS, split your investments into multiple funds

2) If you want to invest as lumpsum, invest in a ladder

fashion every year. Investing 50000 in 2016, 2017,

2018 etc. You can redeem partially when ever the

returns are high.

3) Best option would be to invest as SIP, as you will

get the benefit of rupee cost averaging.

WHICH IS THE BESTWAY TO INVEST INELSS?

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SHOULD YOU HAVE TAX SAVER FUNDSOR ELSS IN YOUR PORTFOLIO?

Mutual funds can be chosen based on the investment goals, so choose equity tax saver

funds as an option for your

child education,

for your retirement,

long term big vacation planning etc.

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Rich man makes his money work for him and that is

the difference with the rest of the people. So use

this tax saving section 80-C wisely from now on.

IS TAX SAVING ARITUAL?

The End.

THANK YOU!

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