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Top Investment Schemes That Save Taxes
- Its no secret that every investor is looking for the best wealth generation strategy that’ll yield them stable, high returns, with low to medium risk.
- But in the sea of investment options available today, its very easy to invest in loss making options or even worse, get scammed by fake investment portals.
- Are you ready to elevate your investment game and take your portfolio up a notch?
Good. Strap in for this ride, as we take you through the secrets of tax-smart investing with the top 7 investment schemes in India that not only boost and diversify your portfolio, but also save you from tax liabilities.
The 7 Best Investment Schemes in India To Save Taxes
1. ELSS (Equity Linked Savings Scheme)
- The Equity Linked Savings Scheme is a must have in the mutual funds section of your portfolio.
- With a minimum of 80% equity exposure, ELSS offers the potential for high returns while providing tax benefits under Section 80C of the Income Tax Act, 1961.
- What sets ELSS apart is its three-year lock-in period, which instills discipline and ensures that investors stay committed to their financial goals.
- Whether you’re a seasoned investor seeking capital appreciation or a newcomer looking to dip your toes into the world of equity investments, ELSS offers a compelling proposition that combines growth potential with tax-saving benefits.
2. PPF (Public Provident Fund)
- For long term wealth creation, you should opt for Public Provident Fund (PPF), a time-tested investment avenue offered by the Government of India.
- PPF not only offers guaranteed interest rates but also provides tax benefits under Section 80C. With a lock-in period of 15 years, PPF encourages disciplined savings and serves as a reliable tool for retirement planning.
- Whether you’re planning for your children’s education, buying a house, or securing your golden years, PPF offers a flexible and tax-efficient solution that stands the test of time.
3. ULIP (United Linked Insurance Plans)
- Experience the best of both worlds with Unit Linked Insurance Plans (ULIPs), the ultimate fusion of investment and insurance. Designed to provide financial protection and wealth creation, ULIPs offer tax-saving benefits under Section 80C of the Income Tax Act, 1961.
- With a lock-in period of five years, ULIPs empower investors to navigate through market volatility with confidence while securing their financial future.
- Whether you’re planning for your child’s education, buying a house, or building a retirement corpus, ULIPs offer a versatile and tax-efficient solution that caters to your evolving needs.
4. Fractional Ownership of Commercial Real Estate
- Investors can unlock the potential for passive income and capital appreciation by pooling their resources through fractional ownership. This allows them to collectively own shares in high-value commercial properties like office buildings, retail centers, and industrial warehouses.
- With tax-saving benefits on top, it’s a great opportunity to enjoy both financial rewards and shared success with other savvy investors.
- Fractional ownership is a game-changer that allows regular individuals to own a piece of commercial properties without breaking the bank. By teaming up with other investors and pooling resources, we gain access to high-quality commercial real estate assets that would typically be out of reach.
5. NPS (National Pension System)
- If you’re investing for retirement, the National Pension System (NPS), a pension scheme designed to provide a fixed income during your golden years.
- With tax-saving deductions of up to Rs. 1.5 lakh per annum under Section 80CCC, NPS offers a compelling proposition for retirement planning. Whether you’re a young professional just starting your career or a seasoned investor planning for retirement, NPS offers flexible investment options and market-linked returns that align with your long-term goals.
- With NPS, you can navigate through retirement uncertainties with confidence while securing your financial future.
6. SCSS (Senior Citizen Savings Scheme)
- Similar to the NPS is the Senior Citizen Savings Scheme (SCSS), a fixed deposit scheme designed for senior citizens. With a fixed rate of interest and tax-saving benefits under Section 80C, SCSS provides a reliable source of income for retirees.
- Whether you’re looking to supplement your pension or fund your post-retirement expenses, SCSS offers a hassle-free and tax-efficient solution that prioritizes financial stability and security.
- With SCSS, you can bask in the joys of retirement without worrying about financial uncertainties.
7. Health Insurance
- Lastly, no diversified portfolio is complete without an emergency fund or health insurance.
- With tax benefits under Section 80D for premiums paid towards health insurance, you can protect yourself against unforeseen medical expenses while optimizing your tax liabilities.
- Whether you’re a young professional just starting your career or a seasoned investor planning for retirement, health insurance offers peace of mind and financial security in times of need.
- With health insurance, you can focus on pursuing your dreams and aspirations without worrying about the financial impact of medical emergencies.
Invest With Assetmonk
For any successful investment, finding the right balance between risk and reward is key. Factors such as your risk tolerance, investment goals, desire for stable monthly income or long term potential goals, all play a huge role.
The best way to do that is by strategically planning out your investment strategy, and creating space for a number of diversified investments in your portfolio. Striking the right balance helps investors remain confident even in the face of market fluctuations.
Assetmonk, a new age alternative investment platform specialising in commercial real estate and fractional ownership of high end commercial properties, is always ready to guide investors on their journey towards building a well-rounded and prosperous portfolio.
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