Which ELSS fund is best?
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\% |
| BOI AXA Tax Advantage Fund – Direct Plan – Growth | 24.43\% | 29.34\% |
Which is better equity or ELSS?
To Summarize. To conclude the difference between an ELSS and other equity mutual fund schemes is the tax saving and the lock-in period. If you want to invest in equity funds and save tax then ELSS is a better option.
What is the difference between equity and ELSS?
ELSS funds have a lock-in period of three years. Whereas, the equity mutual funds, have no lock-in period. But, if you are looking for an investment option that gives you easy liquidity option, you can consider investing in equity mutual funds; you can pay the exit load, and redeem your investment at any time you want.
How do I choose the best ELSS mutual fund?
How to select the right ELSS fund and create wealth
- Market Cap Composition Of The Portfolio.
- Understand The Concentration Risk And Over-diversification.
- Check The Expense Ratio Of The ELSS Fund.
- Check The Basic Parameters.
- Compare The ELSS Fund With Other Equity Funds You Have Invested.
- Finally.
What is ELSS mutual fund?
Equity-Linked Savings Scheme or ELSS is an open-ended equity mutual fund. The best ELSS mutual funds invest in equity and equity-related securities of companies across the market segment. Investments in ELSS mutual funds are eligible for tax benefits under section 80C of the Income Tax Act.
Which is the best ELSS fund in India 2021?
Table of Best ELSS Funds for 2021: Fund Name Returns (\%) Returns (\%) Returns (\%) Returns (\%) Fund Name 1 year 3 year 5 year 10 year Axis Long Term Equity 53.46 15.49 16.84 18.22 Mirae Asset Tax Saver 68.86 20.37 21.84 — Invesco India Tax Plan 55.08 13.99 16.01 15.57
Why ELSS funds are better than other section 80C instruments?
Hence, being invested in equities, ELSS funds have the potential to generate higher returns other Section 80C instruments like Public Provident Fund (PPF), National Savings Certificate (NSC) and tax saving bank fixed deposits over the long term.
How much tax can I save by investing in ELSS?
By investing Rs 1.5 lakhs each year, one can save taxes up to Rs 46,800. After a period of three years, gain from ELSS funds will be treated as long-term gains and taxed at 10 per cent for the gains above Rs 1 Lakh.