How do you invest a lump sum amount in tax saving investments at the fag end of a financial year? Here are some answers.

Edited Highlights

0:46 How do you invest a lump sum in tax saving investments at the end of a financial year?

2:10 You can invest a lump sum amounts in ELSS

2:13 Investing lump sum in ELSS is not the best way. Systematic investment plan (SIP) is a superior method

2:34 The maximum limit for a lump sum investment in ELSS is Rs 1.5 lakh for Section 80C deduction

3:04 Single premium life insurance policy is another option for lump sum investment

3:11 The tax deduction is only available if premium is less than 10% of sum assured

3:36 To get a deduction for Rs 1.5 lakh, you need a sum assured of more than Rs 15 lakh

4:16 When opting for ELSS as a tax saving investment, is better to use SIPs and invest regularly

4:21 In the long term, you buy more units when the market is down and more when the market is high

4:22 As a result, average cost of buying a unit goes down and you gain as the scheme NAV goes up over time

5:02 In the new financial year, you can invest your money in a systematic transfer plan (STP) of a mutual fund

5:09 STP regularly invest any lump sum in a mutual fund scheme of your choice