Why ELSS funds perform better?
Advantages of Investing in ELSS Funds ELSS mutual funds come with a lock-in period of just three years, which happens to be the shortest among all tax-saving investment options under Section 80C of the Income Tax Act, 1961. Therefore, ELSS mutual funds are more liquid as compared to any other Section 80C investment.
Why mutual funds are better than equity?
Returns – While mutual funds offer investors very decent returns over a period of time, equity stocks have the potential to bring the investor extremely high returns over a much shorter period of time. However, mutual funds are a much more stable form of investment due to its diversity.
What’s the difference between mutual fund and equity fund?
A mutual fund collects money from many investors and invests it in stocks, bonds, or short-term debt. As such, a mutual fund can be a stock fund or a bond fund, whereas an equity fund will never primarily invest in bonds.
What are the advantages of mutual fund?
Mutual funds are one of the most popular investment choices in the U.S. Advantages for investors include advanced portfolio management, dividend reinvestment, risk reduction, convenience, and fair pricing. Disadvantages include high fees, tax inefficiency, poor trade execution, and the potential for management abuses.
Is it good to invest in equity mutual funds?
Mutual funds are a safe investment if you understand them. Investors should not be worried about the short-term fluctuation in returns while investing in equity funds. You should choose the right mutual fund, which is in sync with your investment goals and invest with a long-term horizon.
Are returns in ELSS mutual funds different from other funds?
But, for those investors, who invest for long-term, returns in ELSS mutual funds and other categories of equity mutual funds are more or less same. Speaking on the returns one can expect from equity mutual fund investments Balwant Jain said, “It all depends upon the scheme or fund one chooses.
What is ELSS (equity linked saving scheme)?
As the name suggests, Equity Linked Saving Scheme or ELSS is a type of mutual fund scheme that primarily invests in the stock market or Equity. Investments of up to 1.5 Lac done in ELSS Mutual Funds are eligible for tax deduction under section 80C of the Income Tax Act.
What is the best ELSS fund to invest?
4. Top Performing ELSS Funds Fund Name 3-year Return (\%)* 5-year Return (\%)* Quant Tax Plan Direct-Growth 28.80\% 22.29\% Mirae Asset Tax Saver Fund Direct-Growth 20.52\% 21.94\% Canara Robeco Equity Tax Saver Direct- G 19.16\% 18.97\% IDFC Tax Advantage (ELSS) Direct Plan-Gr 15.94\% 17.60\%
Is ELSS good for salaried individuals?
ELSS works very well for Salaried Individuals as apart from the upside of higher returns, they can also avail tax benefits under Section 80C of the Income Tax Act. That said, ELSS is also suitable for those who are open to short term risk and can stay invested for a long time for better returns.