Get Tax Savvy

In Make money & save on tax we showed you all the fixed-return tax-saving options. But blindly investing in one or two of them will not do you any good. Other than fixed-return, we also have the Equity Linked Savings Schemes (ELSS) which are mutual funds that give a benefit under Section 80C. These have a three-year lock-in and give higher returns than its Section 80C peers. You need to figure out how much of your tax-saving investment must be allocated to fixed return. There is no standard answer and you have to take a look at your investment portfolio. Let's say that it is your first job and you want to invest for the long-term. Since you have age and time on your side, the best investment would be the equity-linked savings schemes. Of course, it is always good to also have a fixed-i

This article was originally published on December 13, 2006.