{"id":3137,"date":"2022-03-29T06:23:00","date_gmt":"2022-03-29T06:23:00","guid":{"rendered":"https:\/\/blog.researchandranking.com\/?p=3137"},"modified":"2025-11-06T23:55:57","modified_gmt":"2025-11-06T18:25:57","slug":"not-tax-saving-but-investing-in-equities-can-help-you-create-wealth","status":"publish","type":"post","link":"https:\/\/www.equentis.com\/blog\/not-tax-saving-but-investing-in-equities-can-help-you-create-wealth\/","title":{"rendered":"Not Tax Saving, But Investing In Equities Can Help You Create Wealth"},"content":{"rendered":"
<\/div>\n

<\/p>\n\n\n\n

You must be busy planning your investments<\/a> to save tax<\/a>.<\/p>\n\n\n\n

But have you ever wondered if it would help you create wealth?<\/p>\n\n\n\n

Let us check out some of the popular tax saving investing options under Section 80C of the Income Tax Act<\/h4>\n\n\n\n
\n
\"\"<\/figure>\n<\/figure>\n\n\n\n

If you keep the returns offered by ELSS aside, then the average returns offered by the remaining instruments are 8%.<\/p>\n\n\n\n

Although these instruments help you save tax, it is not easy to create wealth by investing in these instruments. Incidentally, some of these products also require a lock-in period, which can cause liquidity issues.<\/p>\n\n\n\n

Now, check out this table<\/strong><\/h4>\n\n\n\n
\"\"
*For tax saving instruments, we have considered the average<\/a> returns instead of CAGR<\/a>.
**Returns are rounded off for easy calculations<\/figcaption><\/figure>\n\n\n\n

It is clear that the tax saving instruments and some ELSS funds have underperformed as compared to NIFTY<\/a> over a five-year period<\/p>\n\n\n\n

However, our model portfolio outperformed NIFTY<\/strong> delivering 36% returns<\/strong> over the last five years (from 1st April 2017 to 31st December 2021).<\/p>\n\n\n\n

This means, if you had invested Rs 1.5 lakhs on 1st April 2017, then the value of your investment would be worth Rs 6.85 lakhs on 31st December 2021.<\/strong><\/p>\n\n\n\n

So, apart from saving taxes, you must consider investing in equities to create substantial wealth over the long term.<\/p>\n\n\n\n

Subscribe to our 5 in 5 Wealth Creation Strategy<\/a> and begin your journey to creating wealth.<\/p>\n\n\n\n

Read more: \u00a0How Long-term investing helps create life-changing wealth \u2013 TOI<\/a>.<\/strong><\/p>\n","protected":false},"excerpt":{"rendered":"

You must be busy planning your investments to save tax. But have you ever wondered if it would help you […]<\/p>\n","protected":false},"author":9,"featured_media":3135,"comment_status":"closed","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"site-sidebar-layout":"default","site-content-layout":"","ast-site-content-layout":"default","site-content-style":"default","site-sidebar-style":"default","ast-global-header-display":"","ast-banner-title-visibility":"","ast-main-header-display":"","ast-hfb-above-header-display":"","ast-hfb-below-header-display":"","ast-hfb-mobile-header-display":"","site-post-title":"","ast-breadcrumbs-content":"","ast-featured-img":"","footer-sml-layout":"","ast-disable-related-posts":"","theme-transparent-header-meta":"","adv-header-id-meta":"","stick-header-meta":"","header-above-stick-meta":"","header-main-stick-meta":"","header-below-stick-meta":"","astra-migrate-meta-layouts":"default","ast-page-background-enabled":"default","ast-page-background-meta":{"desktop":{"background-color":"var(--ast-global-color-4)","background-image":"","background-repeat":"repeat","background-position":"center center","background-size":"auto","background-attachment":"scroll","background-type":"","background-media":"","overlay-type":"","overlay-color":"","overlay-opacity":"","overlay-gradient":""},"tablet":{"background-color":"","background-image":"","background-repeat":"repeat","background-position":"center center","background-size":"auto","background-attachment":"scroll","background-type":"","background-media":"","overlay-type":"","overlay-color":"","overlay-opacity":"","overlay-gradient":""},"mobile":{"background-color":"","background-image":"","background-repeat":"repeat","background-position":"center center","background-size":"auto","background-attachment":"scroll","background-type":"","background-media":"","overlay-type":"","overlay-color":"","overlay-opacity":"","overlay-gradient":""}},"ast-content-background-meta":{"desktop":{"background-color":"var(--ast-global-color-5)","background-image":"","background-repeat":"repeat","background-position":"center center","background-size":"auto","background-attachment":"scroll","background-type":"","background-media":"","overlay-type":"","overlay-color":"","overlay-opacity":"","overlay-gradient":""},"tablet":{"background-color":"var(--ast-global-color-5)","background-image":"","background-repeat":"repeat","background-position":"center center","background-size":"auto","background-attachment":"scroll","background-type":"","background-media":"","overlay-type":"","overlay-color":"","overlay-opacity":"","overlay-gradient":""},"mobile":{"background-color":"var(--ast-global-color-5)","background-image":"","background-repeat":"repeat","background-position":"center center","background-size":"auto","background-attachment":"scroll","background-type":"","background-media":"","overlay-type":"","overlay-color":"","overlay-opacity":"","overlay-gradient":""}},"footnotes":""},"categories":[9],"tags":[67,25,22,48,70,28],"class_list":["post-3137","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-investing","tag-equity","tag-equity-investments","tag-long-term-investments","tag-stock-market","tag-taxation","tag-wealth-creation"],"_links":{"self":[{"href":"https:\/\/www.equentis.com\/blog\/wp-json\/wp\/v2\/posts\/3137","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/www.equentis.com\/blog\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.equentis.com\/blog\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.equentis.com\/blog\/wp-json\/wp\/v2\/users\/9"}],"replies":[{"embeddable":true,"href":"https:\/\/www.equentis.com\/blog\/wp-json\/wp\/v2\/comments?post=3137"}],"version-history":[{"count":2,"href":"https:\/\/www.equentis.com\/blog\/wp-json\/wp\/v2\/posts\/3137\/revisions"}],"predecessor-version":[{"id":59836,"href":"https:\/\/www.equentis.com\/blog\/wp-json\/wp\/v2\/posts\/3137\/revisions\/59836"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/www.equentis.com\/blog\/wp-json\/wp\/v2\/media\/3135"}],"wp:attachment":[{"href":"https:\/\/www.equentis.com\/blog\/wp-json\/wp\/v2\/media?parent=3137"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.equentis.com\/blog\/wp-json\/wp\/v2\/categories?post=3137"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.equentis.com\/blog\/wp-json\/wp\/v2\/tags?post=3137"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}