2. Equity Linked Savings Scheme: Equity Linked Savings (ELSS) Scheme is generally an open ended mutual fund scheme. It not only helps you to save tax but also provides you an opportunity to enhance your financial strength.

ELSS invests primarily in domestic equity markets with a 3 year lock-in period and delivers good returns to the investors. Since the gains are earned through equity investments, the returns are higher if compared with other debt saving instruments.

3. Rajiv Gandhi Equity Savings Scheme: Rajiv Gandhi Equity Savings Scheme (RGESS) is a tax advantage saving scheme for equity investors. This scheme offers tax benefits to the investors who invest up to 50,000.

RGESS has a lock-in period of 1 year. The lock in period and smaller investment amount makes t this scheme the most convincing option for the equity investors. The returns earned basically are market based and the dividends earned are tax free.

4. 5- Year and 10- Year NSCs: National Savings Certificates are the most popular tax saving instruments offered by the central government. It I s issued by the postal departments and are considered as a safe small savings options. It provides assured returns.

This scheme offers a risk free saving option to the investors. You can start with a minimum deposit of 100. The interest rate of 10 year NSC is 8.8 percent with a maturity period of 10 years. This scheme allows you to claim for tax deduction benefits up to 1.5 lakh under the Section 80 C. Similarly, 5 year National Savings Certificate offers 8.5 percent rate of interest to the investors along with 5 years of the lock in period.

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