Net Yield 8.77%
SINGLE-PREMIUM insurance products are yet to hit the market. Very few plans are now on offer for investors. Bajaj Allianz Wealth Insurance is a singlepremium plan, which is a good investment among its peers due to its low-cost structure and high net yields. The plan is a type I insurance product having an exhaustive basket of funds for investment. However, based on past performance, the mid-cap fund is a lucrative investment considering that the fund generated a return of 193% in five years. The fund also offers loyalty additions on maturity. Being a singlepremium plan, the premium limit is a little on the higher side.
The NPS is a great way to save tax if you don't mind locking in your money till you retire. Till last year, the taxability of the NPS was a big issue. But last year's Budget changed the rules and made 40% of the corpus tax free. The PFRDA wants that the balance 60% to be exempt from tax as well. The emphasis is on increasing pension coverage. So, allowing EEE status (to NPS ) is our major demand (in the Budget NPS is especially useful for investors who may have exhausted the `1.5 lakh investment limit under Section 80C but want to save more. Another way the NPS can cut tax is by rejigging the salary.If a company deposits up to 10% of the basic salary of an employee in the NPS under Section 80CCD(2d), the amount will be tax free. Turn to page 28 to see how much tax this can save. However, the take-home pay of the employee will come down. Invest Rs 1,50,000 and Save Tax upto Rs 46,350 under Section 80C. Get Great Returns by Investing in Best Performing ELSS Funds Top 10 Tax...
