Suggest chapter 6 tax investment options
As the title says, want to invest in chapter 6 , amount - 1.5 lakhs. Was thinking of elss, not interested in ppf as I'm planning to do ms next year. All suggestions welcome, thanks in advance
Get a term life insurance if you’re young. It’s dirt cheap and you pay fixed price (the price that you entered at) per year irrespective of age.
With what is left, I’d recommend ELSS for equity and Tax Saver FD or NSC for debt. NSC requires you to go to the post office and fill some offline forms, but generally has better returns than Tax Saved FD. Term is 5 years for both.
He goes for MS abroad, that Term life Insurance won't be useful. They don't might not cover events outside India. ELSS is preferred. EPF is better, max out there. Can withdraw with 2 months of leaving job. He won't be having income of he's studying, so not much tax liability