1. Although an ELSS fund is the best Sec 80C tax-planning instrument, in terms of returns, tenure and unlimited investment, debt-oriented investors seeking better returns than PPF or 5-year FDs, could even opt for Ulips with Hybrid funds option, where flexibility of debt-equity allocation and tenure is in your hands, along with its tax-free income being an insurance product.
2. If you're seeking a long-term Sec 80C instrument to supplement your EPF, VPF and ELSS investments for meeting a separate goal aimed at debt allocation, you can complete your Sec 80C tax benefit limit each year with a Ulip, offering a hybrid funds option.
3. It allows a fixed number of free switches every year from equity to debt or vice versa without any tax implications.
4. It is, therefore, a convenient rebalancing tool to reset your asset allocation every year.
5. It is also handy if you want to put more money in the debt portion, as there is no tax on short-term gains from Ulips.
6. You can even use the liquid fund of your Ulip to put your very short-term money too.
7. Income and capital gains is tax free under Section 10(10D).
8. Its returns are better than PPF or 5-year FD, besides allowing flexibility of tenure and debt-equity allocation in your hands.
11. As a long-term top-up Sec 80C instrument for young earners, it would work well for specific needs, but nothing can beat ELSS-EPF/VPF combo for Sec 80C wealth creation !
12. Persons not eligible for EPF/VPF could opt for ELSS-ULIP-PPF combo, while retirees could opt for ELSS-SCSS-ULIP combo too.
2. If you're seeking a long-term Sec 80C instrument to supplement your EPF, VPF and ELSS investments for meeting a separate goal aimed at debt allocation, you can complete your Sec 80C tax benefit limit each year with a Ulip, offering a hybrid funds option.
3. It allows a fixed number of free switches every year from equity to debt or vice versa without any tax implications.
4. It is, therefore, a convenient rebalancing tool to reset your asset allocation every year.
5. It is also handy if you want to put more money in the debt portion, as there is no tax on short-term gains from Ulips.
6. You can even use the liquid fund of your Ulip to put your very short-term money too.
7. Income and capital gains is tax free under Section 10(10D).
8. Its returns are better than PPF or 5-year FD, besides allowing flexibility of tenure and debt-equity allocation in your hands.
9. New Ulips of insurance companies are quite transparent and charges are much lesser than earlier.
10. For higher returns, you can always keep its market-linked equity portion higher than its debt portion, which would then be better than other Sec 80C instruments except ELSS and ELSS-EPF combo for obvious reasons.11. As a long-term top-up Sec 80C instrument for young earners, it would work well for specific needs, but nothing can beat ELSS-EPF/VPF combo for Sec 80C wealth creation !
12. Persons not eligible for EPF/VPF could opt for ELSS-ULIP-PPF combo, while retirees could opt for ELSS-SCSS-ULIP combo too.