How to organise your funds to get the best tax advantages Depending on how high the risk factor is for your investments, it can be divided into three categories - high, moderate, and low. Let’s check out how these vary and how they apply in your case: High-risk tolerance: If you are a risk-taking investor seeking high returns in addition to Section 80C tax benefits, you may want to think about investing a total of 1.5 lakh each year in equity-linked savings schemes (ELSS). This mutual fund can potentially provide double-digit returns while saving taxes. In other words, you can take advantage of tax advantages now while earning a profit later on. Moderate-risk tolerance: If you have a moderate appetite for risk, you can invest some of your money in ELSS and the remainder in tax-saving fixed deposits or the Public Provident Fund (PPF). This tactic lets you balance your risk and returns while providing the tax benefits required by Section 80C. Low-risk tolerance: If you fear taking risks, you can invest in PPFs or fixed deposits. The risk exposure on these avenues is low. Also, you can take the same tax deduction of 1.5 lakh rupees under Section 80C in this case. Although these are safe options, the returns may only range between 6% to 8%. As inflation is an option one can’t avoid, this is hardly any amount.