As the financial year draws to a close, one can very well evince an increase on certain categories of funds that qualify for tax deduction under Section 80C. Equity Linked 
Savings Schemes (ELSS) and Unit Linked Insurance Plans (ULIPs) undoubtedly become the undisputed flavour during these taxing times. “People invest in these funds not out of need, but for tax exemptions...” remarked P. Banerjee of DSP Meryll Lynch to B&E.
Benefits that ELSS and ULIPs offer are definitely alluring. Higher returns, a 30% tax benefi t on the investment amount, zero capital gains tax, tax-free capital appreciation et al, are lucrative offers by all measures. ULIP combines the dual portfolio of investment and insurance into a single entity. ULIPs have received overwhelming response as they relieve the investment and insurance seeker from the hassle of tracking a portfolio of products. ELSS, on the other hand, can be looked at as tax saving options with high equity exposure. They feature funds that have to keep at least 80% of their cash invested in equity at all times. But a stampede towards investing in these funds at the end of the financial year to save taxes dilutes the basic principles of investment. As Amit Saxena, CEO, Planman Financial, voices, “A last minute dash would more oft en than not leave an investor in schemes that match neither his needs nor requirements.” That’s one reason this column comes at the start, and not at the end of this financial year; plan ahead :-)
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Source : IIPM Editorial, 2006
An IIPM and Management Guru Prof. Arindam Chaudhuri's Initiative
Read more:-
· My Blog
· IIPM News
· IIPM : IIPM Links
· IIPM: More about IIPM
· IIPM Alliances - IIPM - by RAVI
· IIPM PUBLICATION
Savings Schemes (ELSS) and Unit Linked Insurance Plans (ULIPs) undoubtedly become the undisputed flavour during these taxing times. “People invest in these funds not out of need, but for tax exemptions...” remarked P. Banerjee of DSP Meryll Lynch to B&E.Benefits that ELSS and ULIPs offer are definitely alluring. Higher returns, a 30% tax benefi t on the investment amount, zero capital gains tax, tax-free capital appreciation et al, are lucrative offers by all measures. ULIP combines the dual portfolio of investment and insurance into a single entity. ULIPs have received overwhelming response as they relieve the investment and insurance seeker from the hassle of tracking a portfolio of products. ELSS, on the other hand, can be looked at as tax saving options with high equity exposure. They feature funds that have to keep at least 80% of their cash invested in equity at all times. But a stampede towards investing in these funds at the end of the financial year to save taxes dilutes the basic principles of investment. As Amit Saxena, CEO, Planman Financial, voices, “A last minute dash would more oft en than not leave an investor in schemes that match neither his needs nor requirements.” That’s one reason this column comes at the start, and not at the end of this financial year; plan ahead :-)
For Complete IIPM Article, Click on IIPM Article
Source : IIPM Editorial, 2006
An IIPM and Management Guru Prof. Arindam Chaudhuri's Initiative
Read more:-
· My Blog
· IIPM News
· IIPM : IIPM Links
· IIPM: More about IIPM
· IIPM Alliances - IIPM - by RAVI
· IIPM PUBLICATION
