Tax Saver ELSS Mutual Funds Vs PPF and NSC and Bank FDs for 2016
Mutual Funds | Public Provident Fund | National Savings Certificates | Fixed Deposits | |
Minimum investment | Rs.500.00 | Rs.500.00 | Rs.100.00 | Rs.100.00 |
Maximum investment | Unlimited | Rs. 1.5 lakhs per year | Unlimited | Determined by bank |
Returns | Not guaranteed | Guaranteed | Guaranteed | Guaranteed |
ROI | Determined by the market situation | 8.70% per annum (approximate) | 8.50% per annum (approximate) | Up to 9% per annum |
Income tax benefit | Yes | Yes | Yes | Yes |
Tax on returns | None for long term capital gains | None | Yes | Yes |
Safety | Risky | Safe | Safe | Safe |
Lock in period | 3 years | 15 years | 6 years | None |
Premature withdrawal | Not allowed | Partial withdrawal after 6 years | Not allowed | Allowed with penalty |
While investments like PPF, FD and NSC may offer a safe environment to invest in, the returns from these investments are limited due to the fixed interest that it can earn in a year. With mutual funds, there may be a risk to the investment but they offer the shortest lock-in periods and the best returns because if the markets do well and the economy progresses, the returns also improve.
Top 10 Tax Saving Mutual Funds to invest in India for 2016 or Best 10 ELSS Mutual Funds in india for 2016
1. BNP Paribas Long Term Equity Fund
2. Axis Tax Saver Fund
3. Franklin India TaxShield
4. ICICI Prudential Long Term Equity Fund
5. IDFC Tax Advantage (ELSS) Fund
6. Birla Sun Life Tax Relief 96
7. DSP BlackRock Tax Saver Fund
8. Reliance Tax Saver (ELSS) Fund
9. Religare Tax Plan
10. Birla Sun Life Tax Plan
Invest in Best Performing 2016 Tax Saver Mutual Funds Online
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