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Indian Stock Market. Investment Guru's Corner
214 hits
| Mar 21, 2005 2:41 am |
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Invest in equity and save tax. |
Shikha
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You wanted to invest in equities, but also needed to invest for tax benefit. The budget 2005 has allowed you to do both in one shot for a good amount.
Invest in Equity Linked Savings Schemes, which are allowed as deduction upto Rs 1 lakh per year for FY 2005-06 (as against Rs 10,000 cap for FY 2004-05). The lock-in is only 3 years, the minimum among all tax saving instruments.
Start early for next year.
Invest in a Systematic Investment Plan (SIP) for the power of rupee cost averaging. You would not feel the pinch of money leaving your account in a big way, and a small amount (min Rs 1000 per month) can be invested regularly every month. To start investing on a monthly basis, you need an initial investment of a minimum of Rs. 1000 followed by at least 5 (upto 12) post-dated cheques of a minimum of Rs. 1000 each.
How it works:
You make an investment and issue Post Dated cheques dated 7th or 10th of every month. The amount would be deemed invested on the cheque date at the then prevailing NAV. What’s more, you do not pay the entry load if you invest through SIP.
Prudential ICICI Tax Plan is a leading ELSS, with returns of about 90% in the past one year (Source: www.mutualfundsindia.com) and 53% growth over last three years.
For forms, pm me.
Private Reply to Shikha (new win) |
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