ULIPs basically work like a mutual fund with a life cover thrown in. They invest the premium in market-linked instruments like stocks, corporate bonds and government securities. Investments in ULIPs attract tax benefits under Section 80C. The returns and the lock-in period depend on the plan chosen.
How about saving for retirement while simultaneously enjoying tax benefits? Then how about investing in pension funds? You can opt for pension funds offered by both insurance companies as well as mutual funds. However be warned that while you don’t pay tax on investing, you will have to pay tax on the pension.
Be regular with your investment. It is best to allocate a portion of your funds from your monthly income and make arrangements to transfer it immediately to another account, from where you can plan your fund allocation for each investment. Do not use the bank account that you utilise for your day to day expenses,… Read More »
Though we have a lot of options for investments and one expense item (school fees) too, the limit to which the tax benefit can be got is only Rs.1 L. The investments can be in any proportion and there is no minimum amount that needs to be shown.In case the tax payer has invested cumulatively… Read More »