Expert advice

May 04, 2017,09.51 IST

Don’t wait to invest in ELSS till fiscal end, start your SIPs now

Vijai Mantri

Come March and we all will be scampering to invest for the tax saving options. The last minute rush to do something which was known to us in pretty advance is a well ingrained habit of us from our student days. Except for a few nerdy people no one would study in the beginning of academic year and will have a nervous breakdown as the month of March approaches.

As the saying goes old habits die hard, we have carried on with the old habit of procrastinating from academic pursuit to personal investments. As a grownup we can escape this trap by being more prudent and farsighted. We need to make simple adjustments to our old habits and inculcate new ones in place. Instead of investing in the last month of March an investor can start investing monthly to avoid last minute hassles. Not only this is very calming on nerves but also improve our chances of making more money.

Historically, investing monthly from April rather than investing a lumpsum in March in ELSS schemes has delivered better returns for investor.

The chart below shows extra returns generated by investing equal amount every month through SIP with that of one time investments in the month of March alone.


Note: Above calculations are based on Select ELSS Schemes.

One time investments of Rs.1,50,000/-in the month of March every year and then investing the same amount every year.

Monthly investments of Rs 12,500/ through SIP starting from April of every FY and continuing till date.

Since year 2002, SIPs have delivered better returns than lump sum investing in ELSS.

If you cannot follow this simple strategy as an adult than don’t force your kids to study regularly at the beginning of academic year.

So get set going and start your ELSS now.

The writer is Chief Mentor and Co-Founder of Buckfast investment Advisory Services.
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