Most of us tend to invest in DSOPF/PPF up to an amount of Rs 1.5 lakh per annum to claim the deduction in income tax under section 80C. We also have an option to claim the same deduction by investing in Equity-Linked Saving Schemes(ELSS) of mutual funds. Comparison between Equity-linked Saving Scheme(ELSS) and PPF (both tax-saving instruments under section 80 C) over the last 21 years is shown below:
Rs 31.5 lakh (@1.5 lakh per annum) invested over a period of last 21 years (up to Mar 2021), grew to around Rs 1.92 crores (post-tax maturity value – 1.75 crores) in the case of ELSS, while investments in PPF have grown to around 72.33 lakh, a difference of more than a crore.
It’s time to start investing in ELSS too besides DSOPF/PPF. Equity outperforms by a big margin over any other asset class in the long run.
Let me help you with your investments in ELSS schemes to not only save taxes but also create wealth.
Need to talk more about this or any other issue related to personal finance? Please feel free to call or book a no-charge consultation with me on this link(https://calendly.com/rakeshgoyal). Confidentiality is assured.