What Is ELSS?

By -

ELSS OR Equity Linked Savings Scheme, as the name suggests, is an equity based mutual fund. Through ELSS, one can invest in tax saving mutual funds & avail tax deductions under Section 80C. There are many advantages to investing via ELSS like:

1.      Your principal amount gets multiplied due to the POWER OF COMPOUNDING
2.      The returns you earn within the lock in period are TAX FREE
3.      Substantially HIGHER RETURN
4.      Minimum lock in period of 3 YEARS

ELSS is an equity diversified fund & investors enjoy both the benefits of capital appreciation as well as tax benefits. But for long term, ELSS generate better returns though with slightly higher risk.

Benefits of ELSS

Here’s some points of advantage one can derive by investing in ELSS:

Equity’s Potential in Getting Return:

Equities are known for giving potentially higher long-term gains compared to other tax saving instruments available in the market. So, with ELSS, one can more effectively & efficiently construct a portfolio keeping in mind the long-term perspective.

Tax Saving Instruments:

Under section 80C, investments in ELSS are exempt from tax. And the returns received from equity funds after the end of 1 year is also tax free. As ELSS funds come with a lock in period of 3 years, the returns, dividends, capital gains also become tax free.

Outperforming Funds:

If you want to save money & earn higher return of approximately 15 percent & more than ELSS funds are the way to go.

Financial Goal Planning:

With inflation beating returns, ELSS funds are the best when it comes to long term financial planning. Under the guidance of an expert financial advisor, one can easily achieve the set goals of buying their dream home, children’s education, wedding, car & much more.

Less Lock in Duration:

ELSSfunds have a 3-year lock in period, which is less as compared to other investment avenues like PPF, FDs, NSC.

Investment Option:

One has an option of either investing in one go I.e. lumpsum amount or can opt for SIP. SIP or Systematic Investment Planning is where a certain amount gets deducted from your account on a monthly basis.



Comments

Post a Comment

Popular posts from this blog

Which term insurance plan is best for you?

By -
  Which term insurance plan is best for you? In today's world, where things can be uncertain, making sure your family has enough money for the future is really important. That's where term insurance plans come in handy. They're an easy and not-too-expensive way to make sure your loved ones have enough money if something happens to you. If you live in Nagpur, it's especially important to pick the right term insurance plan, and having a trustworthy insurance agent or advisor in Nagpur can really help. In this article, we'll talk about the different types of term insurance plans available and help you figure out which one might be the best for your situation. Level Term Insurance: One of the simplest and most widely chosen types is level term insurance. With this plan, you pay a fixed amount of money for a certain period, like 10, 15, 20, or 30 years. Many people in Nagpur like this type because it's easy to understand. If you happen to pa...
Read more

Six sip secrets you should know.

By -
  Six sip secrets you should know. Mutual fund investing has long been regarded as one of the best strategies for long-term wealth growth. Like many other Indian cities, Nagpur is seeing an increase in the number of people using mutual funds to reach their financial objectives. By using a systematic investment plan (SIP), you can invest in mutual funds in one of the most well-liked and convenient ways possible. However, there are a few SIP secrets that, when understood and used, can drastically affect the results of your mutual funds. We'll go into these six SIP secrets in this blog and examine how they can affect your financial journey, with a particular emphasis on Nagpur and the significance of a mutual fund advisor in Nagpur. Consistency is key - Systematic Investment Plans, or SIPs, encourage investors to make consistent, recurring investments. This methodical strategy makes sure that you invest a set amount of money at regular intervals, usually once a mo...
Read more

Sip or Buying a DIP? Which is better?

By -
  Sip or Buying a DIP? Which is better? Investors have access to a wide range of tactics and methods for investing in the financial markets. The SIP (Systematic Investment Plan) and the DIP (Buying the Dip) are two widely used techniques. The decision between the two tactics depends on a number of elements, each of which has advantages and disadvantages. With a focus on the setting of SIP investment in Nagpur, India, and the function of a financial advisor or investment planner in Nagpur, we will examine the contrasts and advantages of each technique in this article. Let's start by discussing SIP investments. A SIP is an investment strategy in which a person makes fixed investments in mutual funds or exchange-traded funds (ETFs) at predetermined periods, generally monthly or quarterly. The rupee cost averaging that SIP provides is its main benefit. The impact of market volatility is reduced because the investment is spread out over time. By using a systematic approach, investor...
Read more