Can I invest in more than one ELSS?
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.
How many types of mutual funds are there?
Hybrid Schemes
| 1 | Conservative Hybrid Funds | A hybrid mutual fund investing predominantly in debt instruments |
|---|---|---|
| 4 | Multi-Asset Allocation Funds | A scheme investing in 3 different asset classes. |
| 5 | Arbitrage Funds | A scheme investing in arbitrage opportunities |
| 6 | Equity Savings | A scheme investing in equity, arbitrage, and debt |
How do I change my ELSS before 3 years?
You cannot redeem or switch your ELSS investment before 3 years. This also applies to investments in ELSS funds through systematic investment plans (SIPs). You can only withdraw each installment after three years of lock-in.
What are the benefits of investing in ELSS?
In ELSS the majority of the amount is invested in equity oriented instruments so potentially one can gain high return on investment if the market performs well. If the investors have a good portfolio then they can earn maximum return on investment in case the economy rises. ELSS provides two fund options to invest in, growth fund and dividend fund.
What is the difference between fundfund and ELSS?
fund or a debt-oriented hybrid fund depending on where at least 65\% of its corpus has been invested. Equity Linked Savings Schemes (ELSS), as the name suggests, invest primarily in equity. ELSS pools money from many investors and invests most of it into stocks and shares of companies
How to invest in ELSS through an SIP?
Like all other mutual funds, it is easy to invest in ELSS through an SIP. You can start an SIP for an ELSS mutual fund for as low as Rs 500. And like other mutual funds, as and when your income increases you can increase your investment amount through SIP top-up.
What is equity linked saving scheme (ELSS)?
ELSS i.e. Equity Linked Saving Scheme are mutual fund investment having key portfolio allocation in equity with 3 year lock in period. ELSS serve twin objective of leveraging the stock market returns and saving income tax upto Rs 1.5 lakh under the section 80C. To know the other features and taxability in case of ELSS read more below.