Which is the Best Tax Saving Investment? - ELSS or Pension Mutual Funds
Equity Linked Savings Scheme (ELSS) and Pension Mutual Funds are both tax-saving instruments and are eligible for a tax deduction of up to Rs. 1.5 lakh under Section 80C of the Income Tax Act. Listed below are some of the differences between ELSS and Pension Mutual Funds.
|ELSS||Pension Mutual Funds|
|Investment||ELSS is a type of mutual fund scheme where most of the fund corpus is invested in equities or equity-related products.||Pension Mutual Funds invest 40% of the money in equity and 60% in debt instruments. There are only 3 pension fund schemes: |
- Reliance Retirement Fund
- Franklin Indian Pension Plan
- UTI Retirement Benefit Pension Fund
|Returns||Not fixed, depend upon the performance of equity market. However, in the past, ELSS has given average returns of 12-14%.||The returns in pension mutual funds are not fixed as it depends on the performance of the equity and debt market. Pension mutual funds have given an average return of 8-10% for a 5-year and 10-year period.|
|Lock-in Period||3 years||Until you reach the age of 58|
|Risk Factor||ELSS carries some risk. However, research suggests that ELSS has given positive returns over a longer period of time.||As the returns depend on the performance of market, there is some amount of risk attached with pension mutual funds.|
|Online Option||One can start an ELSS online.||One can invest in pension mutual funds online.|
|Liquidity||One can withdraw money from ELSS anytime after 3 years.||One cannot withdraw the funds before retirement. The standard retirement age is taken as 58 years.|
The IPO of Marinetrans India Ltd opened for subscription on 30th November 2023 and closed for subscription on 05th December 2023. The stock of Marinetrans India Ltd has a face value of ₹10 per share and it is a fixed price issue; with the price already set at ₹26 per share for the IPO. The Marinetrans India IPO has only a fresh issue component with no offer for sale (OFS) portion.
- Dec 05, 2023Read More
About the IPO of Graphisads Ltd The IPO of Graphisads Ltd opened for subscription on 30th November 2023 and closed for subscription on 05th December 2023. The stock of Graphisads has a face value of ₹10 per share and is a fixed price issue. The issue price for the fresh issue IPO has been fixed at ₹111 per share. The IPO of Graphisads Ltd has only a fresh issue component with no book built portion.
- Dec 05, 2023Read More