Dhirendra Kumar reviews an investor's portfolio.
I have two running SIPs in ELSS funds but from this financial year, I'll be able to cover for my 80C deductions through my home loan. Should I continue to invest in the ELSS funds? Simultaneously, I have also been switching from regular to direct plans of these funds.
Keeping the current scenario in mind, I've chosen PPFAS Long Term Equity, Axis Focused 25 and ICICI Pru Balanced Advantage Fund for my portfolio. Is this fine?
Further, after incorporating all deductions, my taxable income in the last financial year was Rs 5.3 lakh. So, should I invest Rs 30,000 in NPS to come under the no-tax bracket?
Investing in NPS under section 80CCD (1B) is a good option so as to reduce your taxable income. NPS has seen various changes and now one has the option to choose to invest about 75 per cent in equity. For someone like you who is aware of the volatility of the equity market, investing in NPS to save taxes is a good option. Further, the performance of NPS is also quite impressive.
If there is no need to invest in ELSS funds, then do not. Instead, invest in the chosen funds. So, there won't be any lock-in here. Further, by switching from regular to direct, if you mean that switching the out-of-lock-in amount, then you may continue doing so.