Not too late to plan your taxes: You can still invest a lump sum in ELSS

Over the long term, the returns would be slightly lower compared to investments made via SIP

If you are among those who plan their taxes in the last two-three months of a financial year, it’s not too late. Invest a lump sum in an equity-linked savings scheme (ELSS). 

Over the long term, the returns would be slightly lower compared to investments made via systematic investment plan (SIP). 

However, these would still be better than traditional instruments such as tax-saving fixed deposits and National Savings Certificate. SIP fares better than lump sum over long periods as it averages cost of purchase. 

Here’s how 10-year SIP investments have fared compared with lump sum investments in different funds.