When is the right time to invest? Don't wait for the year end.

As per Income Tax Guidelines, Tax Saving Investments can only happen with the earnings in the financial year only!!
That means, if you want to invest in tax saving instruments in April, it will not be considered for tax savings. (This is valid only for salaried employees who get their salary at the end of the month).

So, once you start getting earning in the financial year, you are good to invest.

Don't wait until march.. start saving/investing right from May!!.. Count the crucial 10 months of returns!!..
If not in bulk, consider Systematic Investment Plan!!!.

ulipinvestment@gmail.com

ELSS and PPF returns are Taxed!!!???

Good news for ULIP Investors!!!

Heard of EET??. Means, Exempted Exempted Taxed. E means, Investments are Exempted from tax, E Interest earned Exemted from tax and T means Returns on maturity are Taxed.

So far PPF, ELSS had EEE that means they are totaaly tax free. on investment, interested earned and on maturity.. but not any more..

Draft recommandations for budget 2007-08 says that PPF and ELSS will be EET!!!

So, only instrument that is totally tax free is insurance based investments!!!..

As ULIPs come under Insurance Based Products, they won't come under EET tax net!.

Have a look at this article in economic times : http://economictimes.indiatimes.com/PPF_savings_may_be_taxed_on_maturity/articleshow/1647814.cms

Happy investing in ULIPs!

ulipinvestment@gmail.com

Does NAV reflect the ULIP Performance?? No! to a large extent

ULIPs are meant for long term investors. But you never know when you would need the money. Marriage, Child's education, etc etc.

So, considering 3 years as a investment horizon, it's important to understand the effect of charges in ULIP as you may want to exit after 3 years for better investment opportunities. 
Also, note that you can take your money after 3 years.

Charges in the initial years of ULIPs eat up lot of your money. For example, let's compare two ULIPs with initial charges..



ulipinvestment@gmail.com