Which mutual fund for tax saving & better returns? Let's break down ELSS & NPS to help you decide your best financial move!
Every tax season, the same question: ELSS or NPS for tax savings? Both are popular, but serve different purposes. It's about aligning with *your* goals & risk appetite!
ELSS (Equity-Linked Savings Scheme) is a diversified equity fund. Shortest 80C lock-in (just 3 years!). Higher growth potential for medium-term goals. Max ₹1.5L tax-deductible.
NPS (National Pension System) is a long-term retirement scheme. Benefits under 80C + *extra* ₹50,000 under 80CCD(1B). Locked till 60. 40% mandatory annuity at maturity.
ELSS offers great flexibility with its 3-year lock-in, freeing your funds for various life goals. NPS funds are locked till age 60, primarily for retirement income.
ELSS: Pure equity, higher potential, LTCG tax (10% on >₹1L profit). NPS: Balanced, moderate returns, 60% tax-free lump sum at 60, but 40% annuity income is taxable.
Don't choose one, combine! Use NPS for the extra ₹50K benefit and ELSS for flexible growth. Plan your future with our Goal SIP Calculator at sipplancalculator.in!