When an investor wants to put money in equities for tax-savings, equity-linked savings scheme (ELSS) is an obvious choice. But rarely anyone thinks of retirement schemes from mutual funds. In this long-term instrument, too, investors get Section 80C but they have a longer lock-in of five years.
While they may appear to be similar to ELSS, fund houses say they serve two different purposes. “Retirement funds are for the long-term goal of preparing for one’s retirement. ELSS is for wealth creation along with tax savings. Investors looking out for a dedicated investment avenue for their retirement savings should look at