How to Invest in ELSS Online
If you are a regular mutual fund investor, then you may have heard about the ELSS funds. ELSS stands for Equity Linked Saving Schemes. It is basically a highly diversified scheme which offers tax benefits under the Income tax act of 80C. A major portion of the capital is invested in equity funds. These are good saving schemes which can grow your money faster than the fixed deposit and PFs. Equity link saving scheme are low threshold schemes which can be started with just a small token of Rs. 500. The investor can choose to invest in one go or in a monthly basis in equity-oriented assets by through SIP (Systematic Investment Plan). For any individual, who are early in their career, ELSS is one of the best mutual fund schemes.
Advantages of ELSS Mutual Fund Scheme:
- It can provide better returns as compared to any other mutual fund(s).
- The lock in period is of 3 Yrs, hence chances of greater return can be higher.
- There is no any certain caps or limit of how much one can invest in it. But Generally, people invest less than or equal to 1.5 lakh to get the tax benefit under the Income tax act of 80 (C).
Things to consider before taking any ELSS Mutual Fund Scheme:
- It requires a lot of time and research to decide which fund is better to make the investment.
- Keep a note of the fund’s past performance as well as their rating.
- The returns offered by these funds are not guaranteed.
Any early investor always feels puzzled about the procedure to invest in ELSS. To invest in them, there are two ways to do so,
- Offline Investment Procedure: The most basic requirement is the key document such as Aadhar, Pan Card etc. Apart from that, the investor needs to provide post-dated cheque in favour of the respective mutual fund and properly filled form/bank mandate forms are necessary.
- Online Investment Procedure: To fill the application online, the investor needs to go to the authorized panel and complete the registration process and later on, proceed with the transactions.
The Top Performing ELSS (Mutual Funds of 2018
Investor always look for various parameters before investing in a suitable option. One of the best options to look forward before investing in the ELSS Mutual Funds is top performing fund of last year. Just analyse the top performing mutual funds of 2018 according to clear tax.
Top Performing ELSS (Mutual Funds of 2018)
|ELSS (Equity linked saving scheme)||3 Yr. returns||5 Yr. Returns|
|Axis long Term equity fund||14.5%||24.6%|
|Aditya Birla Sun life tax relief 96||15.90%||23.5%|
|DSP BlackRock tax saver fund||14.3%||20.7%|
|Reliance Tax saver fund||9.2%||21.12%|
|ICICI prudential long-term equity fund||12%||20.1%|
|Invesco India Tax Plan||11.02 %||19.05%|
These funds have generated close to 20% returns over the past 5 years period. These can be considered as best ELSS fund. But, before selecting any such funds, investor should first evaluate their risk appetite as well as past performance of those funds. Investor needs to remember that past performance is not a guarantee to the future performance. But it can be used as a benchmark for the future references.
Disclaimer: Mutual fund Investments are subject to market risks. Please read the scheme documents carefully before investing.