Even though there are many tax-saving investments available on the market, equity-linked savings schemes (ELSS) and national pension schemes (NPS) are the most popular due to their flexibility. There are, however, significant differences between their purposes and schemes. Income Tax Act, 1960, section 80C allows deductions for investments in ELSS and NPS up to a limit of 1.5 lakhs. Hence, the ultimate aim of tax saving can be achieved by both investments. But who can invest in which option is a question?

Before investing in any plan, several factors need to be considered. Be clear in your goal. Your financial goals should be clearly understood. It is important to know what you are saving for at all times. To make financial decisions, it is crucial to understand your investment goals as long-term, short-term, and immediate. For long-term investors, NPS might benefit a lot. However, for short-term investors, it is better to invest in ELSS. NPS is purely for retirement and ELSS is for short-term financial goals and tax saving. Still not sure where to invest? Don’t hesitate to get in touch with investment coaches to clear all your doubts in your investment journey.