Tax Savings has been the primary driver to investment decisions so far, by individuals starting to earn. In their formative years as an Investor, capital safety is the foremost need, hence they majorly chose to invest in guaranteed return plans like PPF, Fixed Deposits, NSC and similar.
With the advent of mobile phones becoming an important medium of Information, the exposure to the present generation about unconventional investment options like Equity, Mutual Funds and other higher returns yielding products is very high.
The need for investment is changing from only safety options to safety with high returns options.
ELSS (Equity Linked Saving Scheme) becomes the best option for saving tax and getting higher returns. It saves tax and gives higher returns than most tax saving plans available in the market today.
Generally, the tax saving investments are done in the last quarter of the financial year. It is advised that the Tax Savings should start at the beginning of the financial year apportioned every month to optimize returns on the invested amount. Monthly investment in ELSS would generate a cash amount of Rs.8000 to 9000/- annually on a monthly investment of Rs.2000/-.
