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Achieving a financial goal is always a dream for any person, everyone wants to live comfortably so they find options to earn more and more. Also everyone wants to earn from their earning. Seeing the demand of the person the market evolved itself and so that everyone finds an option to earn. And hence several new terms like consumers, investors came in market. When we talk about investors, they are defined as a group of people who invests in the market so that they can make profit from it. Seeing the demand of the investors the market is developed for everyone, the various forms of investment are mutual fund investment, forex investment, buying stocks in market, etc. The most efficient form of investment is mutual fund investment because if you are having basic knowledge of it you can make reasonable profit from, also the chances of getting a loss is less as compared to other form of investment. If market is not in your favor then also you can get a less but steady income. Depending on the demands it is further divided into various other forms such EQUITY MUTUAL FUND, DEBT MUTUAL FUND, LIQUID MUTUAL FUNDS, etc. Each having its own specification.


We know market is for all, also for them who wants to save for their future i.e. for their post retirement period. Usually in this competitive environment we look for present comfort zone and hence ignoring the future. Usually many of the investors are unaware of these type of schemes or having very less knowledge about the same. And hence the post retirement schemes despite being so efficient and healthy are ignored. Of all the mutual fund there is a name called ELSS (Equity linked saving schemes) which is known for its tax-efficiency and post retirement help. It is usually defined as a long term equity fund investment with a lock in period of 3 years and is categorized under mutual funds, in this mutual fund most of the investment is done in equities or equities related products. For young earner it is always difficult to save for future, this scheme helps to save a tax as well helps to increase the wealth.

To use scheme proper study of the subject and then proper planning is necessary otherwise it can be harmful also. Some steps should be followed and those steps are as follows.


This is a diversified form of mutual fund scheme and have a lock in a period of 3- years. After 3 years the scheme gets matured and then it is termed as “open ended schemes”, means you can now withdraw your money. This type of investment is for long term goals so instead of withdrawing, keep that money invested. Equity related schemes need time to perform, so it is good to invest in this scheme every year. Keep investing for 5 years before your retirement. This will decrease the risk of getting a loss.

Everyone have some daily expense and several other types of expenses so it is not possible to invest all the money they earn. So a question arise how much to save for this investment and how to plan for this.


  • Check your daily expense and record that data for analysis.
  • Reduce this expense by 5%.
  • Calculate the no of year you have left for the retirement.
  • It’s time to calculate how much you can actually save and invest that in funds till your retirement.
  • It’s never easy to choose the right ELSS, as there are various forms of ELSS which makes things quite a bit complicated. It will be good if the investment is diversified i.e. the investment is done in some of the forms of ELSS.


Two major form of investment is Growth and dividend. Investment can be done through various methods but the most effective form is SIP or Lump sum. In this form of investment the investor needs to invest a fixed money before a specified date. Advantage of this form of investment is that it isolates you from ups and downs of the market and your amount is averaged.

Minimum investment is up to 500 and the upper limit of the investment can go up to any limit. But point to consider here is that the maximum tax saving ceiling is 1, 50,000 per year.

The lock in period of ELSS is 3 years, after that we should keep an eye on that i.e. keep reviewing that. If the investment is still productive there is no problem in further investment. Also compare the funds return with its benchmark return. If that investment is unable to beat its benchmark return for a continuous period of time try to remove it from your portfolio. Try to explore more and more so that you can more things in your portfolio.


Lower lock in period as compared to PPF which is having a lock in period of 15 years. It gives 2 times more interest rate than other form. ELSS gives higher return as well as is negligibly taxable. This form of investment is easy to track, easy to invest and is paperless.

Some of the popular ELSS available in market are

  • Reliance tax saver fund
  • DSP Blackrock tax saver fund
  • Axis long term equity fund
  • SBI magnum Tax gain scheme
  • ICICI prudential Long term equity fund


ELSS is best form of investment when it comes to retirement plan and tax saving and this is the reason why it is gaining popularity. It invests the money in equity shares of the company in various capitalization form i.e. large cap, medium cap and small cap. This form of investment helps in wealth building with lower lock in period. Also the SIP form of investment prevent you from ups and down of the market. So ELSS helps in achieving the financial goal in the most efficient manner and can should be proffered by all of them who want to secure their post retirement period.

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