FAQ - Tax Saving Investments 80C, PPF, ELSS
1. PPF or ELSS?
2. I'm still not sure about ELSS. What should I do?
Try dipping your toes, invest Rs. 50,000/- this year and gain experience for the next 5 years. There is absolutely no penalty on not investing more next year.
3. I'm a senior citizen. Should I still invest in ELSS with a lock-in period of 3 years?
What is the end-use of the money you're going to invest in ELSS? Do you need it for your living expenses in the next 5 years (the lock-in period for ELSS is 3 years but Ideal Investment Time Horizon to get good returns is 5 years)?
If no, and this amount is basically for wealth creation/ passing on to your next generation, ELSS is the right product for you.
Reason - Even if you're no more tomorrow, the investment can be passed on to your children and they can utilize the money after 5 years (the recommended holding period for ELSS Investment). Do not compromise on investment option as it can ultimately affect the purchasing power of the money you're going to pass as an inheritance.
If yes, you are dependent on this money for your living expenses within 5 years, PPF (with a matured file) is the only right 80C investment Option for you.
4. I'm utilizing the 80C limit as home loan repayment. Any suggestions for me?
Please start a SIP for your home loan and repay your home loan smartly. Click here to know what we mean.
5. I want to save/ invest for my grandkids/ kids. Should I invest in ELSS for them?
Why not! Go ahead and start investing now.
6. I've already invested in PPF this year. Can I pre-schedule my investments for next year from now on?
Yes. Get in touch with our team to pre-schedule your next financial year's investments. Once you do that, ELSS will be automatically invested every month from April 2022 onwards! You can do that now!
Reach out to us, if you want to invest in ELSS -
Schedule a Call: https://calendly.com/nivesh-mitr/niveshmitr