How do I add money to ELSS?
You can invest in ELSS the same way that you invest in any Mutual Fund. The easiest way is through an Online Investment Services Account. You can invest either as a lump sum or via the SIP (systematic investment plan) route.
Can I add extra amount to existing mutual fund anytime?
Yes, you most certainly can. Mutual fund houses allow you to invest in mutual fund schemes whichever way you like. So, if you have an ongoing SIP with a mutual fund house in say scheme A, you can definitely add more amount as lump sum in the same scheme.
Can I have two ELSS mutual funds?
You may consider investing in two or three ELSS funds. However, you may avoid investing in multiple ELSS funds as you could struggle to monitor your investment. Your investment in ELSS qualifies for a tax deduction under Section 80C only up to a maximum of Rs 1.5 lakh per annum.
Can I increase existing SIP amount?
You can increase your SIP which will allow you to make adjustments to certain anomalies like the difference caused by the rate of inflation which may be higher than you expected; or the actual return on investment which may turn out to be lower than anticipated, etc.
How can I add lump sum in SIP?
There are two ways to invest this amount:
- Start a monthly SIP of an amount that you are comfortable with, and this could be Rs 10,000, Rs 20,000, or Rs 50,000. Let the money stay in your bank account till all of it gets invested systematically in the chosen equity funds.
- Invest the lump sum in a liquid fund.
Can I Sell my investments in ELSS funds?
Or will it not be considered for tax-saving since I switched already in invested funds? To begin with, yes, you can sell your investments in regular equity mutual funds and invest the money in an ELSS fund to claim tax deductions.
What is the lock-in period of ELSS mutual funds?
ELSS mutual funds have a mandatory lock-in period of 3 years. You can switch from the regular plan of an ELSS mutual fund to the direct plan after the lock-in period of 3 years. This means that switches and redemptions are not permitted before 3 years.
What can I do with my ELSS after 3 years?
After 3 years, you can switch to the direct plan of the same scheme or to any other scheme of the same fund house. You can also redeem your units and invest elsewhere or spend the money. Another option is to leave the money in the existing ELSS regular plan until you need it. An exit load will not apply after three years.
How to transfer ELSS funds from one Demat account to another?
ELSS funds that are under a lock-in period cannot be transferred via CDSL Easiest. The only way to move the locked in ELSS units from one Demat account to another Demat account is by “Closure cum Transfer” of the Demat account. The units in lock-in can be moved to another Demat account which is under the same PAN holder’s name.