1. Undoubtedly, ELSS gives the best returns among all tax-saving products, with long-term CAGR being nearly double of others.
2. For tax purposes, however, all of them will give the same tax savings u/s 80C, depending on tax slabs, as the total investment for its calculation is limited up to allowed savings.
3. The tax savings will become more for those whose income slabs also change to a lower slab due to these tax savings.
4. Where an ELSS investor immensely gains is from the excess "savings" on ELSS investment every year, throughout his earning years.
5. This excess monthly "savings" keeps getting doubled automatically too every 8-9 years, along with the actual ELSS investment, and proves to be a good hedge against "good debt" loans.
6. But ELSS alone wouldn't tackle high-cost "bad debt" loans, due to its annual tax-savings cap, hence such "bad debt" loans should be dealt with on priority, besides investing in other "unlimited' open-ended long-term equity funds too.
2. For tax purposes, however, all of them will give the same tax savings u/s 80C, depending on tax slabs, as the total investment for its calculation is limited up to allowed savings.
3. The tax savings will become more for those whose income slabs also change to a lower slab due to these tax savings.
4. Where an ELSS investor immensely gains is from the excess "savings" on ELSS investment every year, throughout his earning years.
5. This excess monthly "savings" keeps getting doubled automatically too every 8-9 years, along with the actual ELSS investment, and proves to be a good hedge against "good debt" loans.
6. But ELSS alone wouldn't tackle high-cost "bad debt" loans, due to its annual tax-savings cap, hence such "bad debt" loans should be dealt with on priority, besides investing in other "unlimited' open-ended long-term equity funds too.