If you are looking at equity as an asset class and want tax reliefs as well, you can opt for ELSS, provided your goals are 5-7 years away. Equity is considered by many experts to be the asset class that can yield returns higher than many other instruments in the section 80C basket. ELSS provides you a chance to buy stocks thru mutual funds and at the time save income tax with higher returns on your long term investment.
Investing In Equities - Better Returns while Saving Income Tax
one of the best asset classes to provide that benefit is equity. Though its risky and volatile in the short-run , all kinds of long-term gains from equity, including capital returns and dividend income, are tax-free . In fact, as the investing period gets longer, dividend becomes a significant part of gains from the equity investment and it provides investors with a consistent flow of tax-free income.
ELSS - Income Tax Saving Instrument - Give It A Thought
If you haven't made the necessary investments already, it is time to go through your salary statement to find out the amount you need to set aside for claiming deductions up to Rs 1 lakh under the section 80C of the Income Tax Act.Since the valuations are quite low at the moment, it makes sense to invest in ELSS.