ELSS should be looked at as not just a tax saving instrument but a great wealth creating instrument.. So if someone has moved to the new regime of taxation and has an investible surplus, must continue to put money in ELSS for a long term wealth creation..
If u r suggesting rule to start with elss then agter 3 yrs locking pls propose also to make ltcg to 0% ...After 3 yrs LTCG shall be made 0% if held beyond 3 yrs and so then
@@jishnu18 bro read carefully even if don't withdraw let's say till 10 years too the point is all SIPs which completed 3 yrs or so whenever I withdraw ltcg shud be 0% if investment is 3+
They all say 3 year locking but no one says its actually 3 years for every sip you do, question is you are locked in with mf for 6 years and let's say in next year or so govt. will close old regime. Than what's gonna happen with elss ??. Coz apart from 80c exemptions I don't knw why people gonna stay invested in these rather than normal flexi cap funds.
Why is he promoting elss so hard ? Absolutely no point in investing in elss when you have better options like flexi cap, small mid caps .... Elss has lockins making it more difficult to adopt tax harvest..also historical returns for elss are poorer than flexi caps
Can you please explain why tax harvesting is not wise ? ... Why not to save our hard earned money if you are able to correctly implement tax harvesting ?
@@pratik14jan oh its super simple. If someone has a small portfolio (both in amt and only 1-2 funds), then it may even seem feasible. Otherwise for medium to large portfolios, if you are selling off units bought at cheaper prices and helping compounding, there is no net benefit over time. Even reinvestment in the same fund is not the same because it neutralises any benefit over time (also there is always a gap of a few days in between). Lots of financial advisors including Parimal Ade (from Yadnya investment academy) says this. Staying invested and spending time in the market is always the best thing rather than playing these silly games
@@pratik14jan even if someone feels that they are doing it "properly", it's only a self-consolation unless they are an established financial expert themselves
This looked like final attempts to save ELSS category from value research and Mr Dhirendra. Overall the future for ELSS doesn't look bright hence it will be better if the fund houses start releasing statements/guidelines to ELSS investors on how they will merge these with their other funds transparently to avoid chaos.And it looks like Nirmala madam is bullish to remove the old regime so they can tax us easily😂😂
NPS should not be made mandatory due to their lock-in feature and mandatory annuity. It is definitely a good option for employees planning to retire at 58-60 but not for anyone who plans to retire sooner.
80-90% people won't be able to achieve financial freedom early (at least before the age of 50). If you exclude govt employees, most will not have any decent retirement funds. Private sector employee & self employed people will face this problem the most. Most will become unemployed during the age 40-50. Most will have no income source after age 50. During age 20 to age 50, if you earn decent income and invest proficiently , still there's a chance that you erode your capital in few years once you start redemption. Also there is a chance you also redeem your portfolio significantly during your earning phase. You lose compounding and a chance to have huge corpus. I will simplify "NPS is for people who are not disciplined. Most are not." I have been investing for 7 years. And NPS is my largest portfolio. During my first 3 years of investing, I thought I was a disciplined investor. Eventually I understood that I'm not.
@@SPR632 I agree with what you said. My point is that it shouldn't be made mandatory or should have an option to withdraw before the age of 60 like in EPF. Ideally there should be a hybrid of EPF and NPS rules which will make people invest but also give an option to remove their savings after 10-15 years if needed.
@@1995Clint I agree with you partially. NPS gives you an option to withdraw upto 25%. Also for terminal disease, marriage or education of your children, you can also withdraw more. I am also not in the favour of 40% towards annuities. IMO, Govt supports this philosophy of annuities due to the data that people seem to misuse a big capital. They will spend most of their retirement fund in few years and then will blame the Govt that they have no pension due to the inefficiency of the Govt. Annuities will ensure that at least they will get a fixed amount of pension every month till the time they live.
The only reason to support ELSS is maybe 1-5% who will spend everything/all investments on their children, will still have something for retirement or even an emergency
Dhirendra is trying hard to be optimistic. :) The long story short is that you would only continue the ELSS if you want financial discipline, i.e. habit forming. We have to assume the govt will remove the old regime altogether, and push everyone into the new regime. So bye bye ELSS.
Great advice, thanks sir Dhirendra Kumar.
You're welcome 🙏
ELSS should be looked at as not just a tax saving instrument but a great wealth creating instrument..
So if someone has moved to the new regime of taxation and has an investible surplus, must continue to put money in ELSS for a long term wealth creation..
I love the way he explained, thank you for uploading sach a good Info.
Glad you liked it. Keep watching!!
If u r suggesting rule to start with elss then agter 3 yrs locking pls propose also to make ltcg to 0% ...After 3 yrs LTCG shall be made 0% if held beyond 3 yrs and so then
After 3 yrs why do you need to withdraw?
@@jishnu18 bro read carefully even if don't withdraw let's say till 10 years too the point is all SIPs which completed 3 yrs or so whenever I withdraw ltcg shud be 0% if investment is 3+
Can you please make a video on Debt mutual funds after Budget 2024. It is now taxed at 40%😢
In future if 9ld tax regime is abolished, then what happens to ELSS funds, they will convert in Flexicap Fund or remain same ELSS fund till redemption
Probably remain named the same or maybe some AMCs will merge with their flexicap
Thankyou Dhirnder sir.
Always welcome
They all say 3 year locking but no one says its actually 3 years for every sip you do, question is you are locked in with mf for 6 years and let's say in next year or so govt. will close old regime. Than what's gonna happen with elss ??. Coz apart from 80c exemptions I don't knw why people gonna stay invested in these rather than normal flexi cap funds.
Why is he promoting elss so hard ? Absolutely no point in investing in elss when you have better options like flexi cap, small mid caps .... Elss has lockins making it more difficult to adopt tax harvest..also historical returns for elss are poorer than flexi caps
True
No sane financial advisor will support tax harvesting anyway
Can you please explain why tax harvesting is not wise ? ... Why not to save our hard earned money if you are able to correctly implement tax harvesting ?
@@pratik14jan oh its super simple. If someone has a small portfolio (both in amt and only 1-2 funds), then it may even seem feasible. Otherwise for medium to large portfolios, if you are selling off units bought at cheaper prices and helping compounding, there is no net benefit over time. Even reinvestment in the same fund is not the same because it neutralises any benefit over time (also there is always a gap of a few days in between). Lots of financial advisors including Parimal Ade (from Yadnya investment academy) says this. Staying invested and spending time in the market is always the best thing rather than playing these silly games
@@pratik14jan even if someone feels that they are doing it "properly", it's only a self-consolation unless they are an established financial expert themselves
This looked like final attempts to save ELSS category from value research and Mr Dhirendra. Overall the future for ELSS doesn't look bright hence it will be better if the fund houses start releasing statements/guidelines to ELSS investors on how they will merge these with their other funds transparently to avoid chaos.And it looks like Nirmala madam is bullish to remove the old regime so they can tax us easily😂😂
NPS should not be made mandatory due to their lock-in feature and mandatory annuity. It is definitely a good option for employees planning to retire at 58-60 but not for anyone who plans to retire sooner.
😅😅.
Nps is too much locking and less benefited... if we have in risk to then why should we no go for mid cap and freedom of exit.😊😊😊😊😊
80-90% people won't be able to achieve financial freedom early (at least before the age of 50). If you exclude govt employees, most will not have any decent retirement funds.
Private sector employee & self employed people will face this problem the most.
Most will become unemployed during the age 40-50. Most will have no income source after age 50.
During age 20 to age 50, if you earn decent income and invest proficiently , still there's a chance that you erode your capital in few years once you start redemption.
Also there is a chance you also redeem your portfolio significantly during your earning phase. You lose compounding and a chance to have huge corpus.
I will simplify
"NPS is for people who are not disciplined. Most are not."
I have been investing for 7 years. And NPS is my largest portfolio. During my first 3 years of investing, I thought I was a disciplined investor. Eventually I understood that I'm not.
@@SPR632 I agree with what you said. My point is that it shouldn't be made mandatory or should have an option to withdraw before the age of 60 like in EPF. Ideally there should be a hybrid of EPF and NPS rules which will make people invest but also give an option to remove their savings after 10-15 years if needed.
@@1995Clint I agree with you partially. NPS gives you an option to withdraw upto 25%. Also for terminal disease, marriage or education of your children, you can also withdraw more.
I am also not in the favour of 40% towards annuities.
IMO, Govt supports this philosophy of annuities due to the data that people seem to misuse a big capital. They will spend most of their retirement fund in few years and then will blame the Govt that they have no pension due to the inefficiency of the Govt.
Annuities will ensure that at least they will get a fixed amount of pension every month till the time they live.
The only reason to support ELSS is maybe 1-5% who will spend everything/all investments on their children, will still have something for retirement or even an emergency
Lock in for each sip in elss is of three years.. as elss is loosing its charm sebi should change this rule..
Dhirendra is trying hard to be optimistic. :)
The long story short is that you would only continue the ELSS if you want financial discipline, i.e. habit forming. We have to assume the govt will remove the old regime altogether, and push everyone into the new regime. So bye bye ELSS.
Completely unnecessary and redundant category.