{"id":381,"date":"2017-01-06T10:39:36","date_gmt":"2017-01-06T10:39:36","guid":{"rendered":"http:\/\/blog.kuvera.in\/?p=381"},"modified":"2019-06-14T07:32:10","modified_gmt":"2019-06-14T07:32:10","slug":"034-why-is-elss-better-than-other-tax-saving-investments","status":"publish","type":"post","link":"https:\/\/kuvera.in\/blog\/034-why-is-elss-better-than-other-tax-saving-investments\/","title":{"rendered":"Why is ELSS better than other tax saving investments?"},"content":{"rendered":"

There are various investment options available under Sec 80C of the Income Tax Act that allow an individual to claim deductions from their Taxable Income by investing and declaring investment in these options. These instruments include the Employee Provident Fund, Public Provident Fund, Life Insurance Policies, Long Term Fixed Deposits and Tax Saving Mutual Fund Schemes also called Equity Linked Savings Schemes (ELSS).<\/p>\n

We looked at various parameters to compare ELSS over other investment options and summarize below why ELSS may be a better investment than other options.<\/p>\n\n\n\n\n\n\n\n\n\n\n\n
<\/td>\nELSS<\/td>\nPPF<\/td>\nNSC<\/td>\nFixed Deposits<\/td>\n<\/tr>\n
Description<\/td>\nMutual Fund Schemes that invest in Diversified Equity<\/td>\nPublic Provident Fund<\/td>\nNational Savings Certificates<\/td>\nFDs of greater than 5 years<\/td>\n<\/tr>\n
Pre-mature withdrawals<\/td>\nNot permitted<\/td>\nConditional<\/td>\nNot allowed<\/td>\nNo tax benefit if withdrawn before 5 years + premature withdrawal penalty<\/td>\n<\/tr>\n
Provider<\/td>\nAsset Management Companies<\/td>\nGOI<\/td>\nDepartment of Post<\/td>\nCommercial Banks<\/td>\n<\/tr>\n
Minimum Amount that can be invested<\/td>\n500<\/td>\n500<\/td>\n100<\/td>\nVariable<\/td>\n<\/tr>\n
Lock In for Tax Exemption<\/td>\n3 years<\/td>\n15 years<\/td>\n6 years<\/td>\n5 years<\/td>\n<\/tr>\n
Risk<\/td>\nHigh<\/td>\nLow<\/td>\nLow<\/td>\nLow<\/td>\n<\/tr>\n
Taxation<\/td>\nNone<\/td>\nNone<\/td>\nInterest Taxable<\/td>\nInterest Taxable<\/td>\n<\/tr>\n
Returns<\/td>\nMarket Linked<\/td>\n8.5%<\/td>\n8.0% (NSC VIII)<\/td>\n6.5% (SBI)<\/td>\n<\/tr>\n<\/tbody>\n<\/table>\n

 <\/p>\n

As you can see from the above table, ELSS schemes have the potential to offer higher returns(though not guaranteed), have shorter lock-ins and all elements including Principal and Capital Gains if any are tax free.<\/p>\n

If you have not invested in ELSS schemes before, please do consider them for tax saving this year. They have proved to be a smart way to save taxes as well as earn returns higher than inflation. And when you use Kuvera to make these investments, there are no commissions paid on your investment by Mutual Funds as we are a Direct Plan Only platform. This puts even more money in your pocket over the course of your investment.<\/p>\n

So Invest Smart and save taxes and commissions today by Investing in ELSS Schemes through Kuvera.<\/p>\n

Please visit www.kuvera.in to invest in Direct Plans of Mutual Funds and save BIG on commissions!!!<\/p>\n

If you like this post, share the love below.<\/p>\n","protected":false},"excerpt":{"rendered":"

There are various investment options available under Sec 80C of the Income Tax Act that allow an individual to claim deductions from their Taxable Income by investing and declaring investment in these options. These instruments include the Employee Provident Fund, Public Provident Fund, Life Insurance Policies, Long Term Fixed Deposits and Tax Saving Mutual Fund […]<\/p>\n

Read More…<\/a><\/p>\n","protected":false},"author":3,"featured_media":655,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"_mi_skip_tracking":false},"categories":[236],"tags":[40,43,17,33,73,53],"yoast_head":"\nWhy is ELSS better than other tax saving investments? - Kuvera<\/title>\n<meta name=\"description\" content=\"ELSS schemes have the potential to offer higher returns, have shorter lock-ins and all elements including Principal and Capital Gains if any are tax free.\" \/>\n<meta name=\"robots\" content=\"index, follow, max-snippet:-1, max-image-preview:large, max-video-preview:-1\" \/>\n<link rel=\"canonical\" href=\"https:\/\/kuvera.in\/blog\/034-why-is-elss-better-than-other-tax-saving-investments\/\" \/>\n<meta property=\"og:locale\" content=\"en_US\" \/>\n<meta property=\"og:type\" content=\"article\" \/>\n<meta property=\"og:title\" content=\"Why is ELSS better than other tax saving investments? - Kuvera\" \/>\n<meta property=\"og:description\" content=\"ELSS schemes have the potential to offer higher returns, have shorter lock-ins and all elements including Principal and Capital Gains if any are tax free.\" \/>\n<meta property=\"og:url\" content=\"https:\/\/kuvera.in\/blog\/034-why-is-elss-better-than-other-tax-saving-investments\/\" \/>\n<meta property=\"og:site_name\" content=\"Kuvera\" \/>\n<meta property=\"article:publisher\" content=\"https:\/\/www.facebook.com\/kuvera.in\" \/>\n<meta property=\"article:published_time\" content=\"2017-01-06T10:39:36+00:00\" \/>\n<meta property=\"article:modified_time\" content=\"2019-06-14T07:32:10+00:00\" \/>\n<meta property=\"og:image\" content=\"https:\/\/kuvera.in\/blog\/wp-content\/uploads\/2017\/01\/Slide08.jpg\" \/>\n\t<meta property=\"og:image:width\" content=\"800\" \/>\n\t<meta property=\"og:image:height\" content=\"800\" \/>\n\t<meta property=\"og:image:type\" content=\"image\/jpeg\" \/>\n<meta name=\"author\" content=\"Neelabh Sanyal\" \/>\n<meta name=\"twitter:card\" content=\"summary_large_image\" \/>\n<meta name=\"twitter:creator\" content=\"@kuverian\" \/>\n<meta name=\"twitter:site\" content=\"@Kuvera_In\" \/>\n<meta name=\"twitter:label1\" content=\"Written by\" \/>\n\t<meta name=\"twitter:data1\" content=\"Neelabh Sanyal\" \/>\n\t<meta name=\"twitter:label2\" content=\"Est. reading time\" \/>\n\t<meta name=\"twitter:data2\" content=\"2 minutes\" \/>\n<!-- \/ Yoast SEO plugin. -->","yoast_head_json":{"title":"Why is ELSS better than other tax saving investments? 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