Last-Minute Tax-Saving Investments: Where to Put Your Money

Minimise your tax liability through last-minute tax-saving investments. Options include ELSS, PPF, NPS, ULIPs, NSC, tax-saving fixed deposits and so on. ELSS for potential high returns in a 3-year lock-in, PPF for stability with a 15-year commitment, and NPS for dual benefits with a longer lock-in. Additionally, ULIPs for combined insurance and investment, and Tax-saving Fixed Deposits/NSC for low-risk, fixed returns. Assess your risk tolerance, investment horizon, and liquidity needs. Always consult a financial advisor for stress-free decisions. Choose wisely to maximise savings as the financial year-end approaches. 

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Key Takeaways

Explore ELSS for potential high returns and short lock-in period under Section 80C but be cautious of associated market risks 

PPF offers stability with a fixed interest rate and tax benefits, ideal for risk-averse investors, despite its longer 15-year lock-in period 

Consider NPS for dual benefits of a retirement corpus and tax savings but evaluate the longer lock-in period and mandatory annuity purchase 

ULIPs provide a two-in-one solution with tax benefits and tax-free returns but be wary of high charges and returns tied to market performance 

Tax-saving Fixed Deposits and NSC are low-risk alternatives with a five-year lock-in, but the interest earned is taxable, and premature withdrawals may incur penalties 

As the financial year-end approaches, choose a tax-saving investment wisely based on your financial goals, risk appetite, investment horizon, and liquidity needs 

Consult a financial advisor before making any investment decisions to ensure a stress-free tax season and maximise savings in April 

Frequently Asked Questions
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ELSS, or Equity Linked Savings Scheme, offers potential high returns and tax benefits under Section 80C, with a short lock-in period of three years.
PPF, with a 15-year lock-in, provides tax benefits, a fixed interest rate, and is ideal for those seeking stable, long-term wealth accumulation.
NPS offers a retirement corpus and tax savings under Section 80CCD(1B) but has a longer lock-in period and mandatory annuity purchase, limiting liquidity.
ULIPs offer insurance and investment benefits with tax advantages. However, high charges and variable returns tied to market performance require careful risk assessment.
Both have a five-year lock-in, provide fixed returns, and suit low-risk investors. However, taxable interest and penalties for premature withdrawals should be carefully considered.
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