Another bachelor, like Pande, has no equity exposure with his tax savings. “I am comfortable with insurance and PPF, and my company covers for medical insurance, which means I don’t need to put money in a health policy to save taxes,” says Bengaluru based 22-year-old Mohit Srivastava. Both these youngsters do not realise the potential benefits that an equity-linked tax-saving option can offer to their finances in the long run besides helping them optimise their tax liabilities in every financial year. For instance, if Rs.1.5 lakh is invested each year as part of tax savings for 30 years, at 9 per cent annual returns, which is marginally higher than what the fixed-return tax-saving instruments pay, the cumulative Rs.45 lakh invested over this time will be worth Rs.2.28 crore. However, if the same amount was put in an equity-oriented tax saver, earning even a marginal 3 per cent more at 12 per cent, the wealth it would create works to over Rs.4 crore, not to forget the tax-saving benefits in this period.