dkj
1
Hi,
I am a govt servant and have been attracted by your responses. I have invested 32000 in a LIC policy and some 35000 in NPS . I dont have any GPF or EPF account. I still need to invest approx 33000 for tax saving under 80c + I also need to invest in infrastructure bonds to save tax on 20,000.What do u think is the best option available .Should I go for ELSS or FDs
Whether to choose equity(ELSS) or debt(Fixed deposits), depends on your age and risk appetite.
If you are below 45, I would advise to put a good amount into equity funds, as they provide better return for a longer run.
LIC and NPS already provide you security, so for better returns you should now invest in equities through ELSS. If your NPS account already have a good percentage into equity, you may consider reducing your other investments into equities.
Ideally your tax saving investment should have following components (in a ratio that matches your risk appetite and age):
1. Term Insurance (for sum assured at-least 10 times your annual salary)
2. Medical Insurance (for you, your family and parents)
3. Public provident fund PPF (as you are not contributing to GPF/EPF)
4. New pension scheme
5. SIP in Tax saver mutual fund (ELSS)
6. Long term infrastructure bond (In case your income falls in maximum slab of 30% income tax rate)
