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Monday, May 25, 2009

Simple strategies to help you create wealth

All of us want to create wealth. Also we want to create it fast and with ease. It is really very easy to do it. Also it does not require any great efforts and skills to create wealth. We just need to develop right habits.

We all know that if we want to reach somewhere fast we need to start early. Similarly if we want to create wealth faster in our life – so that we can enjoy it while we are young – we need to start creating it earlier on. Legendary investor and wealthiest man on earth Warren Buffet made his first investment when he was 11 years old and according to him he started late. Warren Buffet was millionaire by the time he was around 30 years old.

Unfortunately most of us procrastinate our wealth creation. Initially when we start our career and earn our first income, we want to buy whole world from it. Soon we get married, we buy home, have our family, expenses keep adding up. Our income increase but so does our expenses. These are testing time for wealth creation. If we wait for next year, next increment, next bonus, next incentive to start saving it will never happen. The only thing that will happen is delay in wealth creation.

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Saturday, May 23, 2009

ELSS good for long-term investor

An equity-linked savings scheme (ELSS) is a variety of diversified equity fund. An investment in an ELSS is taxdeductible under Section 80C of the Income Tax Act. An ELSS is like any other equity fund. However, the lock-in period is three years. It comes with all the usual trappings of an equity fund, including the choice between dividend and growth options, and systematic investment plans (SIP).

Under the IT Act, investors investing in an ELSS can claim benefits under Section 80C. The limit under this Section is Rs 1 lakh. The dividends earned in an ELSS are tax-free . The returns at maturity are also tax-free .

Among all tax-saving options an ELSS stands out. However, in the present conditions, the returns have not been as good as in the past. The stock markets have given huge negative returns in the last year and all equity schemes, including tax-saving ones, were down.

Read more  here