ELSS and Bank FD Combo
Most of the individuals are not including the Tax Saving schemes like (ELSS) in their financial annual planning exercise this year.
What is the reason for not including tax saving schemes in financial planning this year? 
This is because markets are not showing any historical high records. Some of the people are happy with the risk-free 8-9 % interest offered by TBSFD (Tax Saving Bank Fixed Deposits) and PPF (Public Provident Funds).
What are the Financial advisors saying?
- Financial advisors are asking investors to invest in a combination of ELSS and TBSFD. These schemes can help them in saving tax, investing money in stock markets, and can preserve capital easily.
- If a person wants to reduce further future risks, he can invest 60-70 % of the money in the TSBFD and PPF and the rest of the 30-40 % in ELSS Bonds.
What does a person can except for these bonds?
A person can accept high due to attractive valuations. As ELSS is a very good entry point with 3 year lock in period.
ELSS offered an average of 1.57 % in last 3 years.
What are the various ELSS Bonds available?
- If you are a high risk appetizer, you can opt for these ELSS Bonds like Franklin India Tax shield with large cap bias.
- HDFC Tax saver and DSPBR TaxSaver are the other Tax Savings bonds for high risk lovers.
What are the other opportunities available other than ELSS?
If investors are not happy with the risks associated with the ELSS, they can go for Pension Plans issued by different Mutual funds. These schemes help in investing about 40 % in equities and the rest of the amount in debt.
