ELSS Guides

ELSS are diversified equity mutual funds that invest a major chunk of your money in equity and equity-related securities. ELSS funds offer you a convenient way to avail tax advantage coupled with trying to generate higher returns by harnessing the potential of the equity markets. Investing in ELSS funds makes you eligible to avail tax deduction of up to Rs 1.5 lakh under section 80C of the Income Tax Act, 1961.

Some of its features are:

  • Ideal way to invest in equity market with less knowledge about it, supported by a professional fund management & a well-diversified portfolio. Can be invested with amount as less as Rs 500 also.
  • Lesser lock-in-period than compared to other tax saving investment schemes i.e, 3 years. PPF comes with 15 years/ NSC with 5 years.
  • Risk oriented, since the securities to be invested are equity. But if the investment is made for longer periods say 7-10 years, volatility in the returns can be minimized.
  • Tax deduction is available under 80C up to Rs. 1.5 lakhs subject to other monetary limits in other modes of investment.

ELSS comes with dual benefits like tax benefits & wealth accumulation.

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