WHEN INTELLIGENT PEOPLE SAVE TAXES, THEY MAKE MONEY

The most common question in respect of investment to save on tax would perhaps be “what is the best way to save on taxes”. With several tax saving instruments (NSC, PPF, Bank FDs, and Equity Linked Savings Scheme) available in the market, investors need to figure out the one which has clear edge over others. Equity Linked Savings Scheme (ELSS) is one such option which is an ahead of others. A quick comparison will let us know more o this.

Advantages of ELSS

1. Being the only equity based tax saving instrument available in the market that offers tax deduction under section 80C
2. As an asset class they carry higher growth potential. The 3 Year lock in period extends flexibility to fund manager to focus on long term opportunities.
3. ELSS has potential to counter inflation and notch up healthy inflation adjusted returns.