Should I invest in ELSS or equity?
National Pension System (NPS) and Equity-Linked Savings Scheme (ELSS) are two of the most popular tax-saving investment options under Section 80C of the Income Tax Act, 1961. ELSS is the better of the two as it has the potential to provide higher returns and come with a lock-in period of just three years.
Which is the best ELSS scheme to invest currently?
The table below shows the top-performing ELSS mutual funds based on the past five year returns:
| Mutual fund | 5 Yr. Returns | 3 Yr. Returns |
|---|---|---|
| BOI AXA Tax Advantage Fund Regular Growth | 20.95\% | 29.79\% |
| BOI AXA Midcap Tax Fund Series 1 Direct Growth | — | 29.49\% |
| SBI Long Term Advantage Fund Series III Direct Plan Growth | 19.93\% | 29.08\% |
What are ELSS mutual funds?
Equity Linked Savings Scheme or ELSS Funds is an open-ended Equity Mutual Funds that help you save and provide an opportunity to grow money. When almost all equity funds restrain you from paying long-term capital gains tax of 10.4\% up to an amount of Rs. 1 lakh, ELSS mutual funds offer tax benefit.
Is axis long term equity fund ELSS a good investment?
The Axis Long Term Equity Fund is an ELSS Investment Scheme that was launched in December 2009. This is one of the best investment plans to opt for in order to save on income tax payments every year and there are a number of benefits associated with such an investment.
Why ELSS is better than other 80C funds?
All in all, ELSS offers more liquidity in the medium term. Unlike ELSS where return is market linked, other 80C investments like PPF or FDs are fixed income products. ELSS has the potential to generate significantly higher wealth in a medium to long-term investment horizon.
Should I invest in ELSS or employee provident fund?
When you are a salaried employee, there is a certain amount that goes towards Employee Provident Fund (EPF) which is a fixed income product. If one wants to balance out risk & return on their investment portfolio then ELSS is the best option.