INSUBCONTINENT EXCLUSIVE:
Stocks, which are inherently risky and may turn volatile at times, are not for the faint-hearted
Dhirendra Kumar, CEO, Value Research, vouches for it
He says it with a sense of conviction that one has to hold the nerve in order to reap dividends from equities.
Equity-linked savings scheme
(ELSS), for instance, is one such product he himself swears by
"I really do not care about short-term significant underperformance because of superior risk adjusted performance and long-term returns
And you have to really withstand some substantial poor performance in a brief period of time," Kumar told ETNow.
In ELSS, an investor gets
"There is a natural enforcement That turns out to be fairly rewarding because once investors are forced to get stuck for three years, it
normally ends up being well," he said further.
Even in the worst of times, ELSS has turned out to be a face saver
If you are looking for proof, Kumar reels off one
"In fact, the worst three-year returns in ELSS funds have been superior to the public provident fund returns
So, there lies the proof," he pointed out.
The importance of ELSS funds cannot be over-emphasised, given the investors' hunt for options to
save that single penny towards tax as the March 31 deadline nears
According to Kumar, instead of waiting for the last minute, one should ideally opt for these investments in a planned manner.
He terms ELSS
be doing SIP (systematic investment plans) from April through the whole financial year so that you do not have to worry or you are not being
threatened by your accountant," Kumar suggested
"The long-term nature of such investments can well turn out to be a huge retirement corpus if this is the only investment one
makes."
Kumar's preference for ELSS funds stems from their well diversified nature, with a very well articulated strategy.
What are his
top picks in this space He lists out four that have been able to deliver the best risk adjusted returns -- Aditya Birla Sun Life Tax Relief
96, Mirae Asset Tax Saver, Motilal Oswal Long Term Equity and Axis Long Term Equity.
