Build an equity-heavy portfolio to meet child’s education or marriage goal

Only this will ensure that you are able to meet the escalation in costs over a 15-20 year horizon For Indian parents, providing the best education that they can afford to their children is a very important goal. Getting a girl child married into a good family is another important one. In fact, many parents start saving and investing for these goals right from the day the child is born. However, besides saving adequately, having the right asset allocation and choosing the correct investment instruments is equally important. These are aspects where many parents go wrong. Before you begin to save for the education or marriage portfolio, first buy adequate term insurance for your family. This will ensure that even in the case of an unfortunate event, there will still be money for the children’s education and marriage. The next step is to begin saving any extra money that comes your way. Children get small sums of money on several occasions from relatives and friends. Parents often squander this money because they consider the amounts to be too small to be worth saving. However, if such sums are saved diligently, they can add up to a tidy sum by the time the child is ready to go to college or get married. Next comes the task of constructing the right portfolio for these goals. Since they are very significant goals, parents often err excessively on the side of caution and invest all the money in fixed-income instruments, such as recurring deposits. Actually, you should invest the bulk of the portfolio in equities, for two reasons. One, these goals would...
Save tax this year. Pay less tax.

Save tax this year. Pay less tax.

Fellow Traders, pay less tax this year. Invest in ELSS (tax saving mutual funds) with SAS Online best discount broker company and you can save upto Rs. 46,350 in income tax by investing upto 1.5 lakhs. Equity Linked Saving Scheme (ELSS) are diversified, open-ended equity mutual funds that have a lock-in period of 3 years. Which means you cannot withdraw your investment before 3 years. Why would you want to lock-in your money? Because doing so provides tax benefit under Section 80C of the Indian Income Tax Act, 1961 upto 1.5 lakhs. Simply, if you invest upto 1.5 lakhs in these funds, that income is not taxable and is tax free for you as opposed to paying upto 46,350 as tax on that income. Moreover, through ELSS funds, you can save tax and grow your wealth at the same time. Here are some reasons why you should invest in ELSS : Low cost of entry : You can start investing with just Rs. 500. Tax Saving : You don’t need to pay any tax on the amount you invest in the funds. Capital Growth : You can get stellar returns (14-16%)  and grow your wealth. Disciplined Investing : By doing a SIP, you can do regular recurring investments. Tax free returns : The returns/capital appreciation you get are completely tax free. Shortest lock-in period : ELSS funds have the shortest lock-in period as compared to any other tax saving instrument. How do ELSS funds compare to other tax saving instruments? ELSS funds are the best tax saving instrument. Check below. Instrument Lock-in Period Pre-Tax Returns Tax Applicable Post-Tax Return ELSS 3...