ELSS vs Insurance for Tax Saving in India

I would like to highlight few things regarding ELSS Investments which are really helpful for all.

There are various tax saving investment options where an individual can save tax u/s 80C of Income Tax Act. However, all such investment options come with reasonable returns. One of the best ways to grow your money along with saving tax is to invest in Equity Linked Saving Scheme (ELSS) Mutual Funds in India.

How do you benefit from ELSS Mutual funds?

1) ELSS mutual funds help you to grow money

2) Save tax u/s 80C by investing up to Rs 1.5 Lakhs

3) Only 3 years Lock in period

4) ELSS returns are tax free

Difference between ELSS Mutual Fund Investments and Life Insurance Investments for Tax savings.

Category Mutual Funds Life Insurance
Ease of investment Anyone can begin investing with smaller amounts and shorter tenures, which are not fixed in nature. Vis-à-vis mutual funds, income is a barrier for investing in Life Insurance absolute tenures are longer. Cannot discontinue before minimum tenure.
Expenses Expenses are lower. Upper limits for expenses chargeable to investors set by SEBI Expenses are higher. With some exceptions where IRDA prescribes limits, most expenses determined by the insurance company
Lock in Period Lock in for ELSS Mutual fund is only for 3 years Lock in for Life insurance investment are depends upon policy. (Generally it starts from Minimum 5 years to 15 Years or more
Tax benefits Section 80C benefits are available only on investments in ELSS/tax-saving funds Section 80C benefits are available on all Insurance investments
Eligibilty Anyone can Invest in ELSS Mutual fund saving Medicals tests and Age can be concern for investment

Start saving now. I’m investing with FundsIndia online platform. You can choose any one of them. There are several other operating now in the online MF marketplace without any hassle of much paperwork and without much brokerage.


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