If you are someone who is looking at Section 80C investments not just for tax-savings, but also for aligning your long-term investment goals such as retirement planning or buying a house ELSS could be you’re the right choice of investment for you.
Tax planning is not only about saving taxes but also an opportunity for wealth creation to achieve future financial goals. If you are genuinely looking capital appreciation then why not look at ELSS as an investment option where the returns have outperformed all the other investment options by a huge margin.
ELSS or equity-linked savings schemes are tax saving mutual fund investments which invest the majority of their corpus in equity and equity-related instruments. ELSS is the only option under Section 80C which allows you to reap the benefits of the returns generated by the equity markets and at the same time offer complete tax shield at the lowest cost possible.
Here are some of the important benefits that make ELSS, the best mutual funds to invest in tax saving:
These funds primarily invest in equities and equity-related instruments. Though equity returns are extremely volatile in short-term, in the long run, equities can provide superior returns. An investor with a long-term investment horizon can expect annualized returns between 12 to 15%.
As compared to other tax saving investment options under Section 80C of the Income Tax Act, 1961 ELSS have the lowest lock-in period of 3 years. In all the other alternatives the lock-in period varies from anywhere between 5 to 15 years with the restriction on withdrawals.
From a taxation perspective, ELSS enjoys the triple tax advantage. The amount invested in ELSS up to the limit of Rs.1.5 lakh is exempt under Section 80C. ELSS funds are equity-oriented with dividend income and the long-term capital gains on them are exempt from tax thus making the maturity proceeds entirely tax-free for an investor.
Whereas, in case of tax-saving FDs, post office FDs and NSC the interest earned is taxable as per your income tax slab; investments in NPS and pension plans are taxed at the time of maturity. Insurance is also an EEE (exempt-exempt-exempt) investment but it is not a pure investment product. Though PPF enjoys the EEE benefit like ELSS, investments in PPF are extremely illiquid with the highest lock-in period.
Equity markets though volatile in the short run, historically, is the best asset class for wealth creation. ELSS funds are professionally managed which offer tax advantage and opportunity to participate in the equity markets.
Yes, the equity market has market risks but it doesn’t have the other risks like interest rate risk, reinvestment risk, liquidity risk, etc. Also, the investment allocation is conducted by fund managers who have adequate research and expertise to make the most out of the investment.
Hence, ELSS works as an easy investment option for multiple purposes and allows you to develop a healthy investment habit for a worry-free future.
‘Baby Boomers’ or our ‘Mommas’ and ‘Papas’ have been lucky to be the last generation of people who have received pensions from their employers, post-retirement. At least some of them did. At their time, it did not matter whether a person worked in a government school or a private company; they were eligible for a pension. However today, except for people working in Government services and organizations, the private sector does not offer pensions. Even the pension for Government employees may not be enough for the rising cost of living and deal with inflation.
National Pension Scheme is one such investment that can be made during an individual’s employed or self-employed days to sustain themselves post-retirement. This not only acts as savings but helps you to save tax as well, when you invest in it. It is indeed a gift that you give your future-self.
The Government of India started the National Pension Scheme under the Pension Fund Regulatory and Development Authority (PFRDA). National Pension Scheme is an after retirement age security coverage to all citizens who have opted for this scheme. It is a voluntary scheme that can be subscribed for pre-retirement.
Based on Union Budget 2019, NPS now qualifies to be an Exempt-Exempt-Exempt (EEE) category product. This means that NPS tax is exempted at all 3 stages. Here is how you benefit from it:
National Pension Scheme comes loaded with certain features and benefits that can prove to be useful for both your long-term and short–term goals:
The following criteria should be met to be eligible for investing in the National Pension Scheme:
There are two types of accounts for NPS and individual may subscribe for:
|Equity||Till the age of 35, the equity portion is 50%, post which it reduces 2% yearly till it becomes 10% by the age of 55.|
|Corporate Debt||Till the age of 35, the corporate debt is 30 %, post which it reduces 1% every year until it becomes 10% by the age of 55.|
|Other Options||1. Aggressive life-cycle fund – begin with an equity allocation of 75%
2. Conservative life-cycle fund – start with an equity allocation of 25%
Reduce as per the investor’s age advances.
Opening an NPS account is not that difficult now. It’s just a click away. You can easily invest in NPS online through the Fisdom App. We are a new-age app that makes it easy to invest in mutual funds, in a matter of minutes.
If you retire at 60:
If you retire before 60 years:
There are certain documents that require to be submitted for withdrawing money from your NPS account:
Now that you have a good idea about a National Pension Scheme and how it works it’s never too late to open an NPS account on Fisdom App.
Muhurat Trading is already live until 7:15 pm! Any trade during these 60 minutes is considered auspicious and is thought to bring great prosperity and wealth.
If you are a long term investor, you should take advantage of Muhurat trading by starting a SIP. Our research team recommends “Axis Bluechip Fund-Growth/Direct”, which has delivered 16.43% returns (past 3 years). You can start an SIP of Rs.500 in just 5 mins.
Invest now, before time runs out. Click on the button below:
Muhurat Trading is just a few minutes away (from 6:15 pm to 7:15 pm)
This auspicious hour also embarks the beginning of the Hindu calendar year (Vikram Samvat 2076), and hence, any trade during these 60 minutes is considered to bring great prosperity and wealth.
If you are a long term investor (and not a trader), you can still take advantage of this shubh Muhurat trading by starting an SIP to get blessings of goddess Lakshmi.
Our research team’s recommendation is “Axis Bluechip Fund Direct Plan-Growth”, which has delivered 16.43% returns in the last three years. You can invest as low as Rs. 500 with SIP within just 5 mins.
Click on the button below to invest in Axis Bluechip Fund Direct Growth:
Diwali, the festival of lights, is considered to bring wealth & prosperity with the blessings of Goddess Laksmi to fulfill your financial dreams along with good fortune and happiness.
Well, it’s not just us! For more than half a century, stock traders all around India trade stocks on Diwali for one hour (popularly known as “Muhurat Trading.”) This auspicious hour also embarks the beginning of the Hindu calendar year (Vikram Samvat 2076). Hence, any trade during these 60 minutes is considered to bring great prosperity and wealth.
This year the Muhurat Trading is scheduled to be held on October 27 with the opening bell ceremony at 6.15 pm, and trading will continue for an hour up to 7.15 pm.
However, even in the most auspicious hour, one cannot avoid risks such as high volatility and lack of diversification in stocks trading. Hence if you are a long term investor (and not a trader), you can instead start an SIP during the “Muhurat” to get blessings of goddess Lakshmi.
Don’t worry, we will remind you few minutes before “mahurat” (6:12 pm on October 27) to invest in “Axis Bluechip Fund – Direct/Growth” (5-star fund recommended by our research team) which has delivered 16.43% returns in the last 3 years. Within just 5 mins, you can start an SIP of Rs.500 while still making the most of your precious time with your family.
Click the button below to explore the Axis Bluechip Fund now (to make sure that you are ready to invest immediately during Muhurat trading hour, instead of wasting time on the day of Diwali).
Happy Diwali from our team at MyWay Wealth!
The most awaited season for the celebration is just around the corner. That’s right!
October 25 the first day of Diwali, marks the festival of wealth “Dhanteras”. It is considered the most auspicious and apt day to buy precious metals, especially Gold, as it brings in wealth and prosperity. And why not? Gold investments have delivered upto 20% returns since the beginning of this year.
Though physical gold is the most preferred form of Gold among us Indians, its carries disadvantages such as storage trouble, fear of theft, no yield and high making charges. However, given our traditions and customs, we shouldn’t let go of the tradition of buying Gold on this special occasion, isn’t it?
You can buy this yellow metal and add it to your portfolio by buying it in its safest form with 24K Digital Gold. When you buy Digital Gold, every rupee is utilized in buying only pure gold thereby avoiding the inconvenience of making charges (which is stored in the secure locker from BRINK’s, a global leader in gold custodian services with 100% insurance cover).
Dhanteras offers! Buy gold instantly for as low as Rs. 1000 and get a 5% gold-back. You can also get hassle-free delivery of gold coins/bars to your doorstep with 50% off on delivery and making charges.
Happy Dhanteras from our team at MyWay Wealth!
The finance ministry’s corporate tax rate-cut gift to India Inc. last weekend was well-received by capital market participants as domestic & foreign investors pumped in the capital in expectation of a spur in the earnings recovery rate. Modi’s visit to the Oval Office is expected to garner positivity for the Indian economy – especially around strengthened trade relations, improved tourism sentiment, and an influx of foreign capital into the home economy.
Having said that, Indian capital markets have been quite resilient in the face of such escalating tensions between two super-economies as it basked in the comfort of an immediate consumption and earnings revival.
Investors are advised to continue investing in a systematic fashion, sticking to asset allocation. If permitted by one’s risk & investment profile, preferences can be skewed towards a large & midcap allocation blend (large-cap orientation) and funds with meaningful exposure to banks, automobiles & IT as sectors.
One such large & midcap fund is “Mirae Asset Emerging Bluechip Fund Direct-Growth.”
★★★★★ (Morningstar Rating)
Ranked #1 in Small-Cap category by last 5Y returns
Return Capacity: High
Risk level: Moderately High
Category: Open-ended and Equity: Small Cap
Last 5 yr returns: 18.05% (as of Oct 04, 2019)
Minimum SIP Amount: Rs. 500
To boost the total returns of your financial portfolios, our Registered Investment Advisor recommends you to take some risk by allocating at least 5-10% of the total portfolio in small-cap funds. SBI Bluechip Fund (rated 5 stars both from Morningstar & Value Research) is the perfect choice for the same.
When a fund house introduces a new mutual fund scheme, it goes by the name New Fund Offer, allowing the firm to raise capital for purchasing securities. One such fund house – Motilal Oswal has launched a New Fund Offer in the large & midcap category – Motilal Oswal Large & Midcap Fund. The category & NFO is expected to benefit from the evolving economic scenarios by way of capturing the uptrend and insulating against headwinds in an optimal fashion.
The fund is suitable for investors having a long-term investment horizon and seeking optimal appreciation across cycles.
Its simple, be an early adopter, get lower NAVs and achieve higher gains!