Hi Basu , Going through your Blog and learning so many things , thank you so much for giving so much insight in to financial world . I am 27 want to invest 1.3 lakh under 80C for tax saving having horizon of 3 years . Taking Term plan of LIC for 60 Lakh cover for 25 Years term paying 13k for year. Can you please advise for how should I go ahead with MF for 1.3 lakh my horizon for investment is 3 years only . I want to take balance risk and maximize my returns as I will be need this money after 3 years . I have gone through your best ELSS for 2016 , so how should I segregate between different funds and with considering RISK factor . Regards, Milind
Stay away from tax saving mutual funds as your time horizon is just 3 years.
Than Sir , which option you suggest considering Tax saving and 3 years of Time , would be helpful for me to understand .
Thank yoj again .
Dear Basavaraj sir,
First, I apologize for asking in some other person’s thread.
I am in the same dilemma. Till FY 2015-16, I was well within 10% Tax Bracket. In FY 2016-17, I am in 20% Tax Bracket and I can save Rs.50,000 under 80C. I was thinking that by investing Rs.50,000 in Tax Saving schemes, I can save 20% Tax (Rs.10,000) and if my taxable income is comes below Rs.5 lacs, I can get rebate of Rs.5,000, a total of Rs.15,000 straight away.
I was confused between PPF, ELSS and SSA (Sukanya). Even though ELSS Lock-in period is 3 years, I can extend it.
As of now, I do not have clear goals in my finances. Please suggest.