The products that qualify for 80C are as follows: Public provident fund Bank fixed deposits (the 5 yr thing) Mutual fund-ELSS ULIPs National Savings Certificate (NSC) Pension Plan Only growth assets have the power to beat inflation in the long run. Equities, equity mutual funds, gold and real estate have the power to beat inflation in the long run. Though they are riskier by nature, in the long run it delivers the best value. Income assets like fixed deposits, bonds, traditional investment-cum insurance policies, etc gives returns less than inflation. Arranging the section 80C products as per the asset class: Income assets • Public provident fund • Bank fixed deposits (the 5 yr thing) • National Savings Certificate (NSC) Growth assets • ULIPs • Pension Plan • Mutual fund-ELSS It is now quite obvious that young and middle aged people should look at growth assets only. ELSS wins hands down over ULIPs since it has far lower costs and charges loaded onto it. This makes it one of the best tax saving instruments available.
Posted on: Tue, 25 Jun 2013 11:59:31 +0000
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