New Delhi: With Diwali and Dhanteras around the corner, investors are not just buying gold but also exploring smart investment options that bring long-term wealth and tax benefits. Among the top festive investments this year are ELSS (Equity Linked Savings Schemes), NPS (National Pension System), and Gold ETFs — each offering unique tax advantages and financial growth potential.
ELSS (Equity Linked Savings Schemes):
ELSS funds are one of the most popular tax-saving instruments under Section 80C of the Income Tax Act, allowing a deduction of up to Rs 1.5 lakh per financial year. These mutual funds invest primarily in equities and have the shortest lock-in period of three years among all 80C options. Over the long term, ELSS funds have delivered average returns of 10–15 percent, making them ideal for those looking to build wealth while saving tax.
NPS (National Pension System):
The NPS is designed for long-term retirement planning. Investors can claim an additional tax deduction of up to Rs 50,000 under Section 80CCD (1B), over and above the Rs 1.5 lakh limit of Section 80C. Contributions are invested in a mix of equities, government securities, and bonds. Upon retirement, 60 percent of the corpus can be withdrawn tax-free, while the rest is used to buy an annuity for a steady pension.
Gold ETFs (Exchange-Traded Funds):
For those who prefer safety and diversification, Gold ETFs offer exposure to gold without the hassle of storage. While they don’t offer tax deductions, long-term gains (after 12 months) are taxed at 12.5 percent without indexation — making them more tax-efficient than physical gold.
Disclaimer : This story is auto aggregated by a computer programme and has not been created or edited by DOWNTHENEWS. Publisher: ZEE News
