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Which is best Investment for Tax Saving

Krishnamurthy Chinnasamy (Final Student) (27 Points)

20 July 2011

Hi Experts,

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8 Replies

hitesh (Telecom Industry) (169 Points)
Replied 21 July 2011

there is no single factor to determine this.. this depends upon your requirements and availability, risk bearing capacity, and other miscellaneous factors.. you must consult investment advisor for the same..

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Krishnamurthy Chinnasamy (Final Student) (27 Points)
Replied 22 July 2011

Thanks Hitesh.

siddharth (none) (304 Points)
Replied 22 July 2011

i think insurance is the best bet for tax saving, u know money back policies through which u get money back every 3 years is tax free, also any amount u get through lic is tax free, and premiums are tax deductible u know

Krishnamurthy Chinnasamy (Final Student) (27 Points)
Replied 25 July 2011

Thank you Siddharth, very valuable suggestion.

Sohil (Learner) (631 Points)
Replied 15 August 2011

To be frank it all depends on risk appetite.

The more the risk you can take more you must invest in it.

Highest risk appetite and chances to earn most return almost 15% or more CAGR than ELSS.But unfortunately this is the last year after which ELSS wont be part for tax savings.THan NPS will be on similar line but it being fairly new people are unaware as well as unaware how will it work or its track record.

If you want least risk invest in PPF though forget the money for next 16 years as you cant break it in middle even in crisis.

Out of this all PPF should be used fully and rest in elss at-least for this year. Total saving will be reduce by atmost 1 lakh Tax on 20k extra could be saved by investing in infra bonds.But ill suggest only invest in them if you fall under 20% or 30% tax rules.As returns on it is around 13.5% per year for 30% tax bracket people .And around 12% for 20% tax bracket people which looks good.Only 10-11% return for 10% bracket and also lock in of 5-7 years.

Its better to pay tax on 20k and invest in MF with self lock in impose.ATleast in 5-7 years mf will give decent return but you need to do some tracking.

Investing in insurance for tax savings is worst advice especially if looking with money back policy.Investing 20k and when dead your family gets 5 lakh or 8 lakh.In this time will that suffice.Best is term plan and consider as if you buying a new mobile piece .Invest and pray your family never face problem in life.Start young .

Also i dont think insurance are counted in 80C its in 80d which comes above 80c limits.

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Hasmukhlal Chheda (NA) (22 Points)
Replied 09 September 2011

There are many investment options available for saving taxes. It completely depends upon your requirements and financial profile so as to select which one will prove most beneficial to you. In such cases, it is advisable to consult some reputed financial services company for your investment needs. Their trained professionals will guide you in selecting the best tax saving investment option.

Gil Burt (admin) (38 Points)
Replied 19 September 2011

I thing penny stocks investment is the best for you........................

Ramalingam K (Founder & Director - Holistic Investment Planners (P) Limited) (21077 Points)
Replied 06 May 2014

ELSS stands out among the other tax saving options. But PPF is also a better tax saving option. So it depends on your overall asset allocation. If you are looking for debt component then you can go for PPF. If you are looking equity component then you can consider mutual fund ELSS.

You may get more details on mutual funds ELSS in the below link.

https://holisticinvestment.in/mutual-fund-elss

Regards,

RAMALINGAM K. MBA, CFP,

CHIEF FINANCIAL PLANNER,

HOLISTIC INVESTMENT PLANNER PRIVATE LIMITED.

www.holisticinvestment.in