Tax Saving investment products play a vital part in everyone’s life as it provides tax benefits under the Income Tax Act Section 80C. Investment is a tricky term understanding all the tools and products might even take days as everyone wants to invest their savings safely and gain high return. There are external factors which affect the retaining rate of dividend or the returns; therefore here is simplified version.
The Best Tax Saving Investment Products which you can opt for:
It is a mutual fund based investing product through which you can double your saving, due to the external factors like the economy and the market rate of dividend might vary and there are chances that you might not remain dividend for months. Even though the risk is high the returns or dividend gained is higher than other investment schemes or products.
Public Provident Fund:-
Also Know as PPF is an investment product where the saving might help you with your retirement and is a long term investment product. This type of product is the best scheme as you can add the saving via installments or as a lump sum amount and would not have to worry about the returns on the maturing date. There is no risk when it comes to returns as no external factors are included while generating the money and the tenure of this type of investment can last up to 15 years and can be further extended.
National Pension Scheme:-
This type of investment product or a scheme is the most common scheme when it comes to post-retirement preparation. There are various benefits under this scheme like tax exemption up to Rs. 1.5 Lakhs, additional deduction and 10% of the salary not being taxed; the list goes on. In this type of investment product, you cannot use the money or the returns until you have retired from the company you were working in. The day you retire you will be able to use the NPS as your salary for further usage.
There are various types of insurance like life insurance, car insurance, health Insurance, bike, fire and many more. These insurance schemes also have their own benefits when it comes to the tax deduction. Life Insurance is the most common and popular savings investment product where you pay your saving in a form of premium every year, this amount can only be received on the date of maturity or in case of emergencies like an accident or death of the applicant.
These are the Best Tax Saving Investment Products currently present in the market and which are popular amongst the public. PPF and ELSS are the most popular investment products when compared with others as one provides a high return and the other provides safer returns without losing any money which was invested. Therefore, one should choose an investment product wisely when it comes to savings.