This Year, Go Dry for a Safe Holi, Go ELSS for Tax Saving!
Holi, the festival of colors, is one of the most awaited days of the year where people gather and play with colors by smearing it on one another. The day seems to be incomplete without the riot of colors and savor of festive delicacies including thandai and gujiya.
However, alarming environmental conditions have been the prime cause which leads us to curb mindless waste of water, especially during the Holi time. Thus, we, at MySIPonline, request you all to celebrate a more responsible, eco-friendly & water-free Holi.
Holi: The Ultimate Season of Tax
The season is famous for one other special reason as well. Well yes, we are dragging your attention to the nearly financial end, and the need to claim tax benefits. Deferring your tax planning until the end will serve you no good at all; thus there is no room left for procrastination. In case you fail to plan your taxes even now, you will end up paying a hefty amount. As a late-lateef and someone who is always behind schedule, you’ll not be able to get the maximum benefits from tax-saving instruments, but you still have time to minimize the losses. Because as we say, it’s never too late to invest!
Being an investment expert, it would be wrong to complete the blog without giving some tips on investment, for that it’s the time when all the employers might be rushing to claim benefits from tax saving. So, here they are concerning the tax season.
- Plan as early as possible You must be thinking, why are we telling you this now? Well, that’s because we believe that you will consider this advice every time you’ll be making an investment in future. During Holi celebrations, as thandai provides you with all the coolness and refreshment you need to stay relaxed, in a similar way, the early investments considering tax planning offer you freshness you need while filing your income tax. Invest in ELSS funds or any other tax saving instrument keeping your goals in mind.
- Don’t get tempted with the short-term performance There are several people out there who are willing to build a huge corpus in a short period of time. Well, that’s the dream of almost all of us. But as there’s no magic wand involved in investments, thus you need to be calm. Don’t just see past 4-6 months performance of a scheme to judge its capability of building returns. Consider at least five years performance of the same before parking your money in the same.
- Don’t focus on tax benefits only Talking about ELSS funds, they are considered to be great tax savings instruments. However, you must not consider simply this benefit before making an invest, for these funds are also intended to provide capital appreciation. So, you can associate your long-term goals with such investments and attain dual benefits.
Why Should You Include the Color of ELSS Fund to Your Portfolio?
There’s a bucket-full of benefits which are provided by these Equity-linked savings schemes that make it an ideal pick for all investors out there. To know more on the same, read the features of ELSS mentioned below:
- First of all, there is the tax benefit for which ELSSs are well-known. It is qualified under the section 80 C of the Income Tax Act,1961 of India. So, you can easily avail the benefit as per your requirements and the limits provided.
- One of the best features of such schemes is that it helps in appreciating the capital invested by the investors over time. Being from the category of equity mutual funds, it fetches healthy return on the investments, and thus offers good value to the investors.
- The lock-in period is one of the major concerns when you think of selecting any tax saving instrument. All other tax saving instruments come with the minimum lock-in of five years. Whereas, ELSSs come with the least lock-in of just three years. It means you can redeem your invested amount along with the profits earned on it, at any point in time after the completion of the lock-in period.
- Above all, the best part is that you can even save in your taxable income by investing in ELSS funds in a completely systematic manner with the help of SIP process. You need not deploy big amount at a single time to avoid the burden. Through SIP, you can easily plot chunks in ELSS scheme from your income throughout the year and can avail the tax benefits under section 80 C.
As of now, you must be acquainted with the benefits of investing in ELSS schemes when you are looking for a reliable tax-saving instrument. To know more about the best performers in ELSS category, click here.
With the festive feeling all around, don’t lose control over your responsibilities. Play safe to avoid any kind of hazards; as they say, the true enthusiasm of Holi prevails if you take adequate precautions. Don’t use any color which is harmful to your skin. Likewise, invest in quality stocks as they’ll help you sail smoothly in your wealth building journey. Also, avoid the use of water for playing and ensure that your celebrations are not insensitive. Make this Holi even more special by saving every drop you can, for those who consider water as a luxury.
For any help or advice, connect with our experts via phone call or email. We offer unbiased online investment services to our clients.
Lastly, we, the team at MySIPonline, wishes you a very happy and colorful festival of colors.
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