Sir, Recently one of my friend opined that ELSS doesn’t give much returns as compared to other MF SIP’s. I am unable to understand the difference between the two in terms of ROI, apart from Lock in Period of 3 Yrs. I have invested in following 3 ELSS–SBI Tax Gain (1k per mon), Axis long term equity fund(2 k per mon), Birla Sunlife Taxgain (2 K per mon). All these plans are perpetual+direct+growth. My doubt is if I am willing for long term investment what difference will it make whether I invest in ELSS or any other equity fund. Investing in ELSS as compared to normal equity will give me added tax advantage.Am I right?
Also, I have purchased ICICI term plan of 30 Yrs period with 75 lAcs cover. Also investing 5 K per mon in PPF. 3 K per mon in RD’s. Kindly suggest improvements.
Ajinkya-There is no proof on your friend’s claim. Because there is not 100% matching two funds which we may say ELSS=Regular Fund when it comes to underlying stocks and sectors. So don’t compare. Stick to your decision and fund is generating the expected return then don’t concentrate on noise 🙂
Very Good,indeed !
Sir also kindly guide me whether i am too much exposed to equity or not..My investments are–1) 3.5 k in NPS(My bank being a PSB opted it so i dont have a veto over its discontinuance) 2)5k in PPF 3)5 k in ELSS 4) 3k in Bank RD’s.
It is hard to say. Because your investment must be linked to your goal. So without knowing much, how can I say whether equity is more or less?