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ELSS is Equity Linked Saving Scheme mutual funds which come under 80C for tax savings. ELSS funds offer triple benefits of tax savings, capital appreciation and tax free returns to the investor. Few things you must know: • It is diversified and comes under 80C for tax savings.     • The return and dividends for ELSS are tax free like in PPF. • This has luck in period of 3 years unlike in PPF for 15 years. • In the PPF, the investor must make at least one contribution in a year or pay a penalty. However, there is no such compulsion in ELSS funds. • The returns are entirely dependent on market .However Some of the funds have grown 2 times in 3 years and 3 times in 5 years. How you can maximize return from ELSS? • Make it GROWTH option instead DIVIDEND option and choose best performing funds. • Can make it DIRECT plan in order to save commission and other expense but your agent may not like this  J • Start through SIP for cost averaging. Let...

Last weekend I thought of doing a FD and was checking with various corporate FD and Bank FDs What I found DHFL corporate FD for 40 months is giving 10.10% interest. But I had a mixed  experience with FDs because last time when I did FD with HDFC ltd , though I did with high interest rate of 10.50%, I got minimal return because of taxation. This time I did not want to repeat the same mistake. So I was checking what are other avenues where post tax return for me would be better than these high interest rate FDs. I found debt funds are better than bank FDs in long run for post-tax return. Now question arises how?  J Before understanding we need to understand  Cost Inflation Index(CII) What is CII? It is used for calculating long term capital gain from income tax act section 48 CBDT has notified the Cost Inflation Index (CII) for Financial Year 2014-15. Complete Notification is Given Below. SECTION 48, EXPLANATION (v) OF THE INCOME-TAX ACT...

Continued from Part  2 Before starting ,people have lot of question? My earning is so less. How can I start ? Dear friends money attracts money… this is law of nature. And to make money we need to start from somewhere, the best time is now …. 7. Invest your saving to increase earning: Never keep money staying in your savings account idle. Break the barrier of fixed things from your brain. Let me give you a good example: Your banks FD mostly give you 8% interest. After taxation this will reduce to 6% or 7%.The market inflation is more than 10%.So just think how you lost the purchasing power of your money in FD! Forget about becoming rich! I am not against FD and other fixed income. However sometimes not to take risk is a big risk. To be on safer side use thumb rule of 100-x where x is your age. Suppose you are 28 year old, then you must save 100-28=72% in equity or mutual fund and rest in fixed income such as PPF, EPF, and Bank FD et...