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Want to Invest in ELSS Funds? Avoid these 5 Mistakes at all Costs

The ELSS schemes in mutual funds are an ideal alternative to the traditional ways to save taxes like PPF and ULIP. But before investing in these funds, make sure that you know the five mistakes commonly committed by new investors.

Most experts agree that Equity Linked Savings Schemes, popularly known as ELSS, is one of the best ways to save taxes. ELSS schemes are eligible under Section 80C of the IT Act and can be used to save up to INR. 1.5 lakhs in taxes in a fiscal year.

A major reason for the rising popularity of these schemes is the fact that they don’t just allow you to save taxes but also hold the excellent potential to generate handsome returns.

However, a large number of new investors end up committing deadly mistakes which costs them a lot of money at times. If you are planning to invest in ELSS, these are five common mistakes that you should avoid at all costs-

  1. Starting Late

The majority of the people do not begin planning their taxes until the last quarter of the fiscal year. Amid the last minute rush, they generally end up investing a lump sum amount in any of the top performing ELSS without a thorough analysis.

This could not only lead to wrong selection but also result in a cash crunch. Thus, it is better to start planning your taxes right when the fiscal year begins. If you want to invest in ELSS, SIP is mostly a better option as compared to lump sum investment.

  1. Exiting the Fund As Soon As the Lock-in Period is Over

ELSS has a lock-in period of 3 years which is lower than other tax-saving options like long-term deposits and PPF which have a minimum lock-in of 5 years. But a lot of investors redeem the units as soon as this lock-in of 3 years is over.

The lock-in period in these schemes is only for the tax break, and you can continue holding your position as long as you want. If your investment in ELSS has generated good returns by the end of the lock-in period and you don’t need the money, you should continue holding your position to earn even better profits.

  1. Investing in Multiple ELSS

Every time an ELSS becomes a top performer, a large number of investors end up investing in it. Over a period of time, these investors find themselves struggling with multiple ELSS from different AMCs in their portfolio.

Rather than investing in a new fund every time it delivers impressive returns, it is better to stick to 1-2 carefully selected schemes. This would make it easier for you to track their performance. If you want to invest more, you can stick with the plans you already have in your portfolio.

  1. Picking Schemes Solely Based on Returns Expected

While your primary goal with any type of investment is to generate returns, there are other important things that you should look into before selecting a scheme for your investment. The plan you choose should appropriately match you, your objective, and view.

For instance, if you’re a conservative investor, a scheme which takes a lot of risks to generate higher returns might not be the best choice for you.

  1. Not Considering ELSS after Exhausting 80C Limits

ELSS funds are equity schemes which allow you to save taxes too. Most investors generally fail to remember the primary objective of ELSS which is long-term wealth generation. As a result, they do not consider ELSS once they’ve already exhausted their 80C limits.

In fact, a lot of ELSS schemes generate returns better than large-cap equity funds. So, even if you’ve exhausted your 80C limit of INR. 1.5 lakhs, you can still consider ELSS for wealth generation.

ELSS offers a great combination of wealth generation and tax savings. If you are planning to invest in them, these are the five mistakes that you should certainly avoid.


Importance of landscaping your property

As a homeowner, it is normal to look for ways of getting your property to show its potential value. This can be achieved by having a landscape done on your compound. These are the reasons why landscaping is quite important;

The first thing about landscapes is they are important for a healthy living, they also offer a good breeze in the air and they obviously make the surrounding attractive. So you can design your compound look attractive in numerous types of ways. You can try any type of landscapes from experts such as Water Wise Landscape and have it well maintained.

It makes your property look both pleasant and attractive. The degree of level of appeal by a particular property is achieved from the amount of time and effort invested in landscaping. A good landscaping will ensure your compound looks attractive.

Landscaping is a good way of incorporating natural resources into beautifying your compound. With landscaping, you do not have to get rid of trees and other plants as you can integrate them in making your compound attractive.

Landscaping increases the value of your home a tenfold. A well-designed landscape is attractive and will cost quite a figure when you want to sell it. To maintain the value of the compound you will have to have it well maintained.

There are a variety of landscape designs which you can apply on your compound. You can choose a natural one or anything you are inspired by. You just have to keep it well maintained to make sure that is attractive all through.

A building which has its surrounding not all that pleasant is not as awesome when you come to think about it carefully. The surrounding matters a lot; so the walking paths, the lawns, the garden, and the flower beds have to be well designed to match with the building.

Risks of Property Development

Property development is a lucrative business if you start off well and you know what you are doing. There are tons of property developers who have made it in this business. They have learnt how to craft their business for an outcome that out rightly favors them and puts them on the map as successful developers. The likes of Aaron Coupe stand out for the knowledge and ability they have in property development.

There are a myriad of websites like this one that give more insight on this topic. It is however of importance to carry out some research on this endeavor before venturing out. This is because, as we will learn below, the risks involved can be devastating and crippling to mention the least. So it is a business that needs wisdom and patience. Let us look at those risks.

1. Inexperience

This is the greatest risk for the beginning developers. Their lack of knowledge in this field can send them spiraling down in no time. However, experts and financial advisers help eliminate this risk.

2. Financial factors

All property developers should set aside a contingency fund for any unforeseen emergency during construction or refurbishment of property.

3. Market values

The value of the property may rise or fall and your capital will be affected. Furthermore, you have no guarantee that there will be demand for the property upon completion. Smaller and quicker turnarounds may be less risky as the time is short.

4. Interest rate rising

If you have borrowed or taken a loan, keep in mind that the interest rates may rise which will cause development costs to go higher.

These are the major risks but there are others like construction risks, dealing with the wrong consultants or even setting your costs on the lower side.

6 more great tips to make moving house easier

Moving house is right up there with the heightened stress levels, hot on the heels of divorce and death, according to some lists. Here are some more ways you can make it just that little bit easier.

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1. Visit your new area

When you arrive at your new home, you are going to want to know where the shops and areas of interest can be found. You may also want to befriend your neighbours as soon as possible. Whenever you have a free weekend before you move, take an opportunity to explore.

2. Take pictures

If you are uncertain about the wiring of your electronics, or you just want to make sure that pictures and ornaments end up in a similar position to where they were in your old home, the best thing to do is take lots of photos. They will give you a visual guide to follow when setting up in your new house.

3. Inventory

If you are a very organised person, you may want to create an inventory of all your belongings to ensure you know what you have and that nothing can be missed. A professional moving company like man and van Slough, at may be able to help if you ask.

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4. Open drawers and doors

If you open all your cupboard doors and kitchen drawers during your last few days at the old house, it will be much harder to leave things behind. You will be able to see everything left inside.

5. Fill nail holes

Nail holes can be easy to fill before you go. Just rub in some soap, or toothpaste, then paint over it. You can leave your walls looking as good as new.

6. Update address

It may seem obvious, but it can be easy to forget. Start with important organisations like the bank, doctor and dentist a few weeks before you go. It is easy to find lists suggesting the most important people to tell. For a small fee, the Royal Mail will be willing to divert post from your old house to your new.

With these few tips, hopefully, your house move can be much less stressful than it would be otherwise. As long as you plan ahead, you will be happily settled in your new home before you know it.

4 Ways to Reduce Pallet Expenses

Pallets aren’t the costliest business products in the world so we hardly ever pay too much attention to the expenses they add to the total shipping cost, but if you do take note of the matter, it is likely that you will notice that the expenses add up to a significant amount over time. The good news is that it is possible for you to cut down on pallet costs without affecting the shipping rates and we will discuss how that’s possible next.

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Sell Your Old Pallets

If there is a bunch of old pallets lying around in the warehouse or at the factory that are no longer usable, contact Gruber Pallets to take them off your hands. Not only will they give you a fair price on your old pallets (depending on their condition), but they will also be able to restock your business with brand new, state-of-the-art pallets at competitive prices to replace the unusable old pieces.

Consider Using a Few Refurbished Pallets

Refurbished pallets can be just as strong as new ones, but at a discounted price. However, a lot depends on the kind of wood they were made from to begin with and the quality of the refurbishment work done on them. Nevertheless, they are a good choice for lighter shipments and could very well help you shave off a good few dollars from the pallet expenses.

Buy in Bulk

Usually pallet manufacturers sell pallets in full or half truckloads and smaller businesses may decide to only order half a truckload at a time. This is a bad idea once the long-term financial factors are considered. Firstly, the manufacturer will charge a significant delivery fee to compensate for the wasted space in the truck, which will apply once again when you order your next batch. The total extra delivery charge plus the cost of the two half truckloads will add up to an amount which is significantly higher than it would have been if you had just ordered a full truck load of pallets to begin with. Additionally, having extra pallets around would mean that you will never be short during urgent shipments and won’t have to depend on the supplier for an express delivery.

Quality Over Price

As the quality of the pallet is of the utmost importance, do not use products that compromise on quality to provide you with ultra-cheap prices. Check out the following reasons as to why cheap pallets are a bad idea and will cost you a lot more down the line than you are saving right now:

  • They may break in transit, which can hurt personnel and damage property
  • They will last for only a short time, forcing you to replace them continuously
  • Mold is often seen on cheap wooden pallets in a matter of weeks

The quality of the wood is a priority of course, but that doesn’t mean you need to buy pallets that are of higher endurance standards than you need them to be. The more weight a pallet can carry, the more expensive they will be, so match the weight of your shipments to the grade of the pallets you are about to order, because if you are currently overspending on your pallets by choosing higher grades than you need to, you could end up saving a small fortune with this little change.

Are there any other hidden business costs you have found that can be reduced?  Let us know in the comments.