Download Tax Saving Mutual Fund Application Forms

Invest In Tax Saving Mutual Funds Online

Buy Gold Mutual Funds

Leave a missed Call on

94 8300 8300

ELSS is great for Retirees also

If a senior citizen has taxable income, then ELSS funds are an excellent option for tax-saving

By all means, he should invest in ELSS funds for saving tax. Everyone who has taxable income should invest in ELSS. It's one of the most misguided and harmful beliefs of investment planning that equity investments are not suitable for seniors. The idea that equity is risky and therefore suitable only for young people actually pushes many old, retired people towards financial problems.

Equity investment is only risky over the short term. For investment periods of three to five years or longer, equity investments are low in risk and high in returns. In fact, when you take inflation into account, it is bank FDs and similar deposits that are harmful. The returns are barely higher than the inflation rate and in effect, your father is losing value or barely maintaining it.

There are also some other points you should consider:

1.       The returns your father will earn from ELSS will also be tax-free because there is no long-term capital gains tax payable on equity. On FDs, the returns are taxable and TDS is deducted yearly. The yearly deduction of TDS further reduces returns by making less money available for long-term compounding.

2.      ELSS is more liquid because the lock-in is three years. In tax-saving FDs, the lock-in is five years.

3.      Unlike other kinds of FDs, tax-saving FDs are completely illiquid. Not only can you not break them prematurely, you can not take a loan against them either.

Of course, like all equity investments, the either way of investing in ELSS funds is through monthly SIPs throughout the year. However, your father can still invest whatever he needs in about five evenly-spaced instalments over the remaining part of the year.

For further information contact Prajna Capital on 94 8300 8300 by leaving a missed call

Leave your comment with mail ID and we will answer them

OR

You can write back to us at

PrajnaCapital [at] Gmail [dot] Com

---------------------------------------------

Invest Mutual Funds Online

Invest Any Mutual Fund Online

Download Mutual Fund Application Forms from all AMCs

Download Mutual Any Fund Application Forms

---------------------------------------------

Best Performing Mutual Funds

1. Largecap Funds Invest Online
1. DSP BlackRock Top 100 Fund
2. ICICI Prudential Focused Blue Chip Fund
3. Franklin India Bluechip
4. ICICI Prudential Top 100 Fund

B. Large and Midcap Funds Invest Online

1. ICICI Prudential Dynamic Plan
2. HDFC Top 200 Fund
3. UTI Dividend Yield Fund
4. Birla Sun Life Front Line Equity Fund
5. Franklin India Prima

C. Mid and SmallCap Funds Invest Online

1. Reliance Equity Opportunities Fund
2. DSP BlackRock Small & Midcap Fund
3. Sundaram Select Midcap
4. IDFC Premier Equity Fund
5. Birla Sun Life Dividend Yield Plus
6. SBI Emerging Businesses Fund
7. HDFC Mid-Cap Opportunities Fund
8. ICICI Prudential Discovery Fund

D. Small and MicroCap Funds Invest Online

1. DSP BlackRock MicroCap Fund
2. Franklin India Smaller Companies

E. Sector Funds Invest Online

1. Reliance Banking Fund
2. Reliance Banking Fund
3. ICICI Prudential Banking and Financial Services Fund

F. Tax Saver Mutual Funds Invest Online

1. ICICI Prudential Tax Plan

2. HDFC Taxsaver

3. DSP BlackRock Tax Saver Fund
4. Reliance Tax Saver (ELSS) Fund

G. Gold Mutual Funds Invest Online

1. Relaince Gold Savings Fund
2. ICICI Prudential Regular Gold Savings Fund
3. HDFC Gold Fund
4. Birla Sun Life Gold

H. International funds Invest Online

1. Birla Sun Life International Equity Plan A

2. DSP BlackRock US Flexible Equity

3. FT India Feeder Franklin US Opportunities

4. ICICI Prudential US Bluechip Equity

5. Motilal Oswal MOSt Shares NASDAQ-100 ETF