Why investments ?
Equity Mutual Funds
An equity-linked savings scheme or ELSS is a tax-saving investment under Section 80C of the Income Tax Act, 1961. By investing in ELSS, you can claim a tax rebate of up to Rs 1,50,000 a year and save up to Rs 46,800 a year in taxes.
A fixed deposit is a financial instrument provided by banks or NBFCs which provides investors a higher rate of interest than a regular savings account, until the given maturity date.
Recurring deposit is a special kind of term deposit offered by Indian banks which help people with regular incomes to deposit a fixed amount every month into their recurring deposit account and earn interest at the rate applicable to fixed deposits.
Tax Saver Funds
What is a tax saver fund? Tax saving mutual funds like ELSS are similar to any other mutual fund scheme with an added advantage of saving tax. These funds help investors (Individual and HUF) save taxes under Section 80C of the Income Tax Act, 1961. Investing in ELSS qualifies for a tax deduction of up to Rs. 1.5 lakh.
A systematic investment plan is an investment vehicle offered by many mutual funds to investors, allowing them to invest small amounts periodically instead of lump sums.