1. For a regular taxable earner, ELSS fund is undoubtedly a front-runner in Sec 80C tax-saving instruments, enjoying E-E-E status, with lowest lock-in period and likely higher market-linked long-term returns, throughout his earning years.
2. However, being primarily tax-related, it should be judged on this aspect first before including it in a senior citizen's MF portfolio.
3. If he's still earning a taxable income, it's inclusion in the portfolio is essential, to the extent required for reducing his tax outgo.
4. If his total income is not going to be taxable even if he is earning, a diversified portfolio of liquid, aggressive hybrid and multicap funds would better suit his current needs (with no lock-in) and long-term goals (with likely higher returns, as ELSS is mostly largecap), by availing LTCG tax benefits on planned withdrawals.
5. Such a portfolio will also be more handy in his twilight years, or when he becomes a very senior citizen at 80, for maximizing returns and optimizing his withdrawals, with LTCG or STCG, in his special tax slab.
2. However, being primarily tax-related, it should be judged on this aspect first before including it in a senior citizen's MF portfolio.
3. If he's still earning a taxable income, it's inclusion in the portfolio is essential, to the extent required for reducing his tax outgo.
4. If his total income is not going to be taxable even if he is earning, a diversified portfolio of liquid, aggressive hybrid and multicap funds would better suit his current needs (with no lock-in) and long-term goals (with likely higher returns, as ELSS is mostly largecap), by availing LTCG tax benefits on planned withdrawals.
5. Such a portfolio will also be more handy in his twilight years, or when he becomes a very senior citizen at 80, for maximizing returns and optimizing his withdrawals, with LTCG or STCG, in his special tax slab.