Is SIP good for tax saving?
SIPs can be one of the best tax-saving instruments with high returns on your investments. You can claim a deduction of up to Rs. 1.5 lakh from your taxable income for investing in ELSS through SIPs under Section 80(C) of The Income Tax Act, 1961. With the highest tax slab of 30\%, you can save up to Rs.
Which is best ELSS fund?
Equity Linked Savings Scheme (ELSS) schemes a majority of the fund corpus in equity and equity-related instruments and feature a lock-in period of 3 years….List of Elss Mutual Funds in India.
| Fund Name | Canara Robeco Equity Tax Saver Fund |
|---|---|
| Risk | Very High |
| 1Y Returns | 36.5\% |
| Rating | 5 |
| Fund Size(in Cr) | ₹2,876 |
What are the tax benefits of SIP and ELSS?
Tax benefit Under SIP: Only investment in ELSS Mutual funds enjoy 80c tax benefits. The taxation on the gains from Mutual funds may or may not be taxable depending upon the mutual fund scheme. Under ELSS: Any amount invested under ELSS scheme can be claimed as deduction from taxable income up to a limit of Rs.1.5 Lakh under section 80C.
What is ELSs and how to invest in it?
ELSS is a type of mutual fund which can help in tax saving for the individual. SIP is one way to invest in Mutual Funds which can be ELSS as well. You can invest into ELSS via the lumpsum mode as well. You can check out a few good ELSS Schemes to invest in 2017.
What is the lock-in period under SIP and ELSS?
Under SIP: The lock-in depends on the scheme opted. It may vary from 0-1 year for equity funds and more for debt funds. The ELSS SIPs are locked in for 3 years. Under ELSS: The lock-in period for all the funds invested whether in lump sum or under SIP payment scheme is 3 years.
What is an SIP and how does it work?
SIPs offer a simplified way to make investments in ELSS, as the investments are spread over time. It lowers the risk of market fluctuations as only a small part of one’s investment faces market volatility. It can prove especially helpful for new investors, as they might not be able to deduce what will be the best time to invest in the market.