www.turtlefinmart.com: ArticleDetails

Articles

Latest articles on Life Insurance, Non-life Insurance, Mutual Funds, Bonds, Small Saving Schemes and Personal Finance to help you make well-informed money decisions.

Industry News

Income Tax Guide

FAQs

share share share

Mutual Funds - What is difference between ELSS and Taxing saving FD

17 Aug 2016

kamagra

kamagra link

melatonin and pregnancy safety

melatonin pregnancy drug class go

Both ELSS and tax saving fixed deposits are great investments for section 80C deduction of income tax act. However, there are some basic differences one should be understood before taking an investing decision.

Factors	ELSS	Tax Saving FD
Investment	ELSS is an equity mutual funds which invests primarily in shares or shares related investments	It’s special fixed deposit made with any bank for at least 5 years.
Returns	The returns in ELSS is not fixed and is completely dependent on equity market’s performance.	The returns obtained are fixed and known to an investor at the time of deposit. Each bank has their own interest rate. Generally it varies from 6.5%-7.5%.
Risk	There is no guarantee of principal safety in ELSS. However, equity investments generally give positive returns on the long-term. As per our research, BSE SENSEX has delivered an annual return of 12.78% in past 10 years.	Tax saving FDs are as safe as Normal fixed deposit of banks.
Liquidity	Amount Invested in ELSS can be withdrawn any time.	Tax saving FDs can’t be withdrawn within 5 years of investment
Tenure	The tenure ranges from three years till any time period as per choice of investor	The minimum tenure is 5 years while the maximum tenure is 10 years.
Lock in period	There is a lock-in period of 3 years in ELSS	There is a lock in period of 5 years involved.
Online	ELSS can be done Online. An investor can invest or sell ELSS fund any time	Some private banks have started offering Tax saving FDs online, but a majority of banks don’t have online facilities.

Further, we advise you to consult your financial advisor or check your risk profile before making an investing decision.

Source: eCRM Team BACK