People want to get totally discount from income tax but do not want to invest in it also.
In such cases, income taxes are also made many times. To save income tax, only 80C has to be invested, on which maximum tax can be waived by up to Rs 1.5 lakh. This discount includes two schemes:
- Public Provident Fund (PPF) and
- Equity Link Saving Scheme (ELSS) of mutual funds.
People who want guarantees on investment prefer the public provident fund (PPF), but those who want to take a little risk on their investment, prefer to invest in Equity Link Saving Scheme (ELSS).
High returns found in ELSS
As far as the returns are concerned, the Equity Link Saving Scheme (ELSS) has given returns of about 19% annually in the last 3 years, where PPF is getting 8% interest. Accordingly, those who invested in Equity Link Saving Scheme (ELSS) have received more than twice the returns. In this case, both of these know about the speciality of tax saving schemes.
Top 5 ELSS schemes in return
- Motilal Oswal Long Term Equity Fund (13.89%)
- Principal Tax Saving Fund (13.77%)
- Kotak Tax Saver Scheme (Growth 13.48%)
- DSP Tax Saver Fund (Direct Plan 14.25%)
- Mirae Asset Tax Saver Fund (Regular Plan 18.98%)