1. For "long-term investment purposes under Sec 80C", ELSS Funds continue to remain the best bet, besides returns, as:-
a) The lock-in period is shortest - only 3 years - with full tax exemption on redemption.
b) Unlike PPF, Ulips and pension plans, there is no maturity date and you can remain invested for a longer period if you want.
c) Unlike PPF, you can invest more than the Sec 80C limit, add (anytime) or redeem (anytime after lock-in) any amount for any number of years, while continuing to avail Sec 80C benefits (within its specified limit) every year.
2. New investors should distinguish between ELSS's various options:-
a) The 'dividend' option is a profit-booking exercise.
b) In the 'growth' option, the amount remains invested for the entire tenure, and has the potential to generate higher returns.
c) Avoid the 'reinvestment' option because you will find it difficult to exit the fund completely, as there will always be some units that have not completed the lock-in period.
3. For accumulating a tax-free retirement corpus, suffice it to say that your annual contribution would double every 9 years in PPF, and every 4-5 years in ELSS currently.
a) The lock-in period is shortest - only 3 years - with full tax exemption on redemption.
b) Unlike PPF, Ulips and pension plans, there is no maturity date and you can remain invested for a longer period if you want.
c) Unlike PPF, you can invest more than the Sec 80C limit, add (anytime) or redeem (anytime after lock-in) any amount for any number of years, while continuing to avail Sec 80C benefits (within its specified limit) every year.
2. New investors should distinguish between ELSS's various options:-
a) The 'dividend' option is a profit-booking exercise.
b) In the 'growth' option, the amount remains invested for the entire tenure, and has the potential to generate higher returns.
c) Avoid the 'reinvestment' option because you will find it difficult to exit the fund completely, as there will always be some units that have not completed the lock-in period.
3. For accumulating a tax-free retirement corpus, suffice it to say that your annual contribution would double every 9 years in PPF, and every 4-5 years in ELSS currently.