the claim in average return is in no way, modestly acceptable. you donot invest in all the ELSS funds equally and look at your returns. you would invest in one or two max. if you are not lucky - the funds will not perform. its better to invest in PPF or in 5 years FD and pay the tax for the interest which would be still a better return when compared to elss fund when you are unlucky (which most people would be) The returns of only 2 funds (out of 47) were higher than 8% (annualised)in the last 3 years.
I had fallen a prey to such misleading article is 2007 and lost upto 60% of the principal amount invested when stocks crashed in 2008. Hence friends beware of such articles. If you pay 30% tax even then you will gain 70% for your own consumption.
30% tax to individual earning is very very heavy burden, it attracts people to adopt mal practices to save tax money. Similarly a limit of Rs.1 lac for 80C is very little comparing to income, if it is made only upto 10 lacs income, and with increase in income-increased-better. Our govt. is apathetic to tax payers, want to loot money. Even they do not want to give any honour for heavy tax payers in terms of any benefit such as booking flats, cars or taking admission in good hospitals on priority,or rly reservation etc., their quota for politicians/govt. servants who do not pay much tax is there, but no respect for tax payers.
According to Value Research, a mutual fund tracking firm, the ELSS category has delivered a mere 1.28 per cent in the last three years, and 4.13 per cent in the last five year. As against this pathetic returns by ELSS the benchmark Nifty has provided a return of 12.1% over the last three years. Investors are better off investing in stocks rather than loose the money by investing in ELSS funds.
Re: Does the author know what is he talking about.
by gopalakrishnan on Jul 19, 2013 01:02 PM
don't go for any investment. If you have good salary go for housing loan else pay tax. Now a days all investment are controlled by fund managers whoes integrity is ??????????.Brid in hand is more value than Brids in the tree
