THE ELSS ROUTE TO TAX SAVING

HE countdown to the financial year end is on.

- ASHOK KUMAR Head of LKW-India. He can be reached at [e-mail] (Views expressed here are personal)

Typically, many tax payers still availing of the older tax regime will now scramble to complete their Tax saving investments.There are multiple options on offer but the sole pure equity option on offer in this category is the Equity Linked Saving Scheme (ELSS) offered by Mutual Fund houses.

The Unit Linked Insurance Plan (ULIP) product offered by Insurance companies is another popular option, where the lock in is restricted to 5 years though ideally one should hold it for longer tenure to optimize returns. In case of ULIPs, the investor also has the advantage of two way fungibility between Equity and Debt.