Investing Hacks

Confused?? If you are confused then you are on the right track. You know the basics about mutual fund investment. This article is for people who are not-so-confused after reading the title. After talking to people about tax planning through ELSS, I often encountered a question from people which goes like this - "So whatever you are telling me is right, but should I do ELSS or SIP??". In this post I am going to answer this question and talk about modes of investment. Resolving Misconception: ELSS and SIP are totally different things. ELSS is type of investment; it's a category of mutual funds in which you can save tax. On the other hand SIP is the mode of investment i.e. how you are paying for your investment. In SIP one simply does not pay all amount in one go, but a small amount on regular intervals. Let's try to understand the difference through an example - Suppose you want to buy a two wheeler vehicle. There are different products available in the marke...

Yes! You read it right. Assuming 30 years of career you can save lot of tax with investment of  ₹ 4.5 lacs  in three years And Remember! Amount saved is amount Earned!! Here is summary what you can save with ELSS - Tax Bracket Tax saving in one year Tax saving in 30 years 5% ₹7500 ₹2.25 lac 20% ₹30000 ₹9 lac 30% ₹45000 ₹13.5 lac Please note that you are not losing this  ₹ 4.5 lac. In fact this  ₹ 4.5 lac could grow more than  ₹ 1 Crore if you keep it invested. Thus you are saving  ₹ 9 lac and gaining wealth more than  ₹ 1 Cr. Does it sound interesting? Let me explain it to you. My aim is to show how to save tax with just 3 years of investing in ELSS. Everybody knows compounding. The more you invest, more you create wealth. This article can derail you from your investing habit. Hence if you follow this methodology you must invest  ₹ 1.5 lac which you wo...