Many first-time investors often panic when they see their investments lose value significantly in a market downturn. Since these schemes come with a mandatory lock-in period of three years, investors would get used to the ups and downs in the market. PPF is a 15-year product, though it allows you to withdraw partially before maturity.įour, ELSS funds also help investors to get used to the volatility typically associated with the stock market. An ELSS has a mandatory lock-in period of three years, whereas other options like a tax-saving fixed deposit has a lock-in period of five years. Three, an ELSS has the shortest lock-in period among the investment options available under Section 80C. So, if you want inflation-beating, better post-tax returns, you should take a close look at And you already know that equity has the potential to offer superior returns than other asset classes over a long period. Beating inflation is crucial to create wealth for long-term goals. That means investors would find it difficult to beat inflation with these investments. These schemes typically offer modest returns. One, most investment options available under Section 80C are government-backed safe instruments like Public Provident Fund and National Saving Certificate Scheme. Though there are many investment options available under Section 80C, many investment experts believe that an ELSS is the best way to save taxes and create wealth in the long term. Investments in ELSS qualify for a tax deduction of up to Rs 1.5 lakh under Section 80C.
If not, you may want to look elsewhere.An Equity Linked Saving Scheme (ELSS) or a tax saving/planning mutual fund scheme helps investors to save taxes under Section 80C of the Income Tax Act. So, there you have it - if your advisor has you invested in any of our "Magnificent Retirement Mutual Funds," they are certainly earning their keep.
companies that are expected to grow much faster compared to other large-cap stocks. FBGRX is a part of the Large Cap Growth mutual fund category, which invest in many large U.S. This fund has managed to produce a robust 11.22% over the last five years.įidelity Blue Chip Growth (FBGRX). Buying stakes in bigger companies offer these funds more stability, and are well-suited for investors with a "buy and hold" mindset. More often than not, Large Cap Blend mutual funds invest in companies with a market cap of over $10 billion. DGYGX is classified as a Large Cap Blend fund. This fund is a winner, boasting an expense ratio of 0.76%, management fee of 0.64%, and a five-year annualized return track record of 20.4%.ĭreyfus Appreciation Fund Y (DGYGX). With a much more diversified approach, JATIX-part of the Sector - Tech mutual fund category-gives investors a way to own a stake in the notoriously risky tech sector. If you are looking to diversify your portfolio, consider Janus Henderson Global Technology I (JATIX).
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