Elss is a better investment choice NSC

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People want to invest their savings in the interest discounts to gain control. One of the most popular formats of saving and investment in India is NSC (National Savings Certificate). There is a tax deduction for the investor in b / c 80C on Indian Income Tax Act. The same tax advantage for another better option for new investment Elss (Equity Linked Savings Scheme) has announced. With regard to the safety of capital and income of NSC will be a better investment option. But in terms ofyields Elss is a notch on the NSC. The yield obtained form NSC 8% per annum (taxable) and Elss expected 10% (not taxed), not bad.

If an investor invests option for the benefit of capital growth, you can also save him some tax is therefore the Elss. Often the traditional and famous NSC-stick, but then Elss is by far the best investment option NSC. Let's take a quick look at some of the advantages of an investment in Elss equal or sometimes better than NSCSpecification:

Income from Elss (10%) of NSC is better than (8%)

Lock-in period is 3 years for Elss and NSC is 6 years.

After 3 years if the units sold Elss, no deductions are made on returns. A long-term capital gains Elss zero. But for NSC, the proceeds are taxable.

Yields on Elss is not a fixed return as NSC. Performance depends on the stock market Elss. Even Elss two different companies do not have now. ThisSince yields Elss also depends on the composition of the stock by the fund manager. If we take the power to Elss last three years to complete (Form December 2009) is almost 8.2%, which is very impressive. Since Elss not tighten when the income tax is retained for three years by far the best investment option at NSC. But, of course, yields are almost certainly in NPC, but not confirmed in the income Elss. So, there is the risk associated with investment Elss. However, given theexpected benefits of Elss, where the risk is worth it.

Elss is a tax-exempt income from savings and investment plan. Similarly, PPF (Public Provident Fund) is to plan a tax-free investment. Revenues for the PPF is not taxable. But the disadvantage of the PPF is that there is a waiting period of 15 years.

Elss list of the few good rules and their actual performance in three years is provided below for your reference in

Diagram of return of 3 years (%)

Canara Robeco Equity Tax Saver 16.9

LoyaltyTax Advantage 12.4

Franklin India Taxshield 9.9

HDFC Taxsaver 10.09

Magnum Taxgain 6.2

Taurus Tax Shield 18.5

Religare fiscally 14.1

12.8 Pru ICICI Tax Plan