---Arjun Kumar Jha
Gaurav Monga, Director, PxG Consultants, responds:
You can consider investing in ELSS for your long-term goals. An ELSS is an equity fund and investments in it is eligible for a tax deduction of up to Rs 1.5 lakh under Section 80C of the Income Tax Act. An ELSS comes with a mandatory lock-in period of three years. However, you should invest in all equity funds with a longer investment horizon of five and above. A longer horizon helps to reduce the risk. Some of the good performing ELSS schemes are- Mirae Asset Tax Saver Fund, Kotak Tax Saver Regular Plan, and ICICI Prudential Long Term Equity Fund (Tax Saving).
For short-term goals, you should give more importance to the safety of capital, and liquidity. For short-term goals you should invest in fixed income/debt products like fixed deposits, liquid and short duration debt funds.
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