ELSS – A popular Mutual Fund amongst Investors
The majority of us have certain aspirations in life, whether it involves taking an international vacay, sending your kids to the business school, buying own house, adopting furry four-legged mates, and so much; this all will begin with a hard look of your finances. Regrettably, many of us are not confident about how to invest the wealth.
Are you thinking to consider parking your savings in ELSS the best tax saving mutual funds? But not sure? Let us help you out.
- Tax Efficient: If tax savings mutual funds are on your mind, then you should consider ELSS investments. Besides serving as an efficient fund shield, it also brings in tax benefits. Claiming tax benefits in ELSS funds is easy. Under section 80c of the Income Tax Act, an individual can claim a tax deduction of up-to 1,50,000 INR per year. Make sure you hand over the copy of your ELSS statement as your investment proof.
- Wealth Creation for Long-Term: ELSS schemes come with a 3-year lock-in period wherein the investor cannot access the funds, thus securing his/her savings. To enjoy fruitful returns, it is recommended to remain invested in ELSS tax saving funds for a period of 5 years or longer.
- Early-Benefits: If you’ve just started enjoying a paycheck every month, it’s natural to feel that you can put off long-term financial decisions such as investments for later part. Although, here’s something that will change the way you look at your finances. Starting prompt means having more time to gather wealth. For instance, if you start investing early, your funds will have a longer period to grow.
- Minimum Investment Required: The required amount for the investment is low and starts with INR 500. This makes ELSS a sound investment option, especially for those who need to start with a low value.
If you’re looking for such investment schemes, we’ve got plenty of TAX SAVING options you can consider.
Disclaimer: Mutual fund Investments are subject to market risks. Please read the scheme documents carefully before investing.