Ensuring Tax Saving And Higher Returns

Garima Singh’s investment in ELSS was her first investment in equity mutual funds and also a way to save on taxes Delhi-based Garima Singh, 31, invested Rs45,0000 in ELSS in January 2019. Earlier she used to buy insurance policies and invest in PPF and tax-saving FDs as a part of 80C tax saving investments. But this time she decided to invest in ELSS funds. She has used up the rest of the Rs1.50 lakh limit in other investments and decided to invest the balance in ELSS. ELSS appealed to her because it offers returns in the excess of 10 per cent with a minimum lock-in period of three years. “Other products with 80C investments have a higher lock-in period and lesser returns than ELSS. I realised that I needed to get started investing and there is no better way to do it than ELSS, as it also provides tax benefits. The lock-in period also means I will not be able to withdraw and...