How can I invest lumpsum amount in ELSS?
ELSS Funds A three-year lock-in is required for ELSS or tax-saving funds. With a lump-sum payment, your investment is unlocked all at once three years after purchase. For example, if you deposit Rs. 1.5 lakh in an ELSS on March 31, 2019, your money will be invested until March 31, 2022.
Which is better lumpsum or SIP?
A systematic investment plan (SIP) is the most convenient way of investing in mutual funds. By opting to invest via an SIP, you eliminate the need to have a lump sum to get started with your mutual fund investment. Through an SIP, you can invest a small sum on a regular basis into the mutual fund scheme of your choice.
Should I invest lumpsum in ELSS?
Choosing ELSS will help you maximize tax benefits under Section 80C. Lumpsum investments will be better suited if you are investing at the end of a financial year, or if you have a higher risk appetite. On the other hand, SIPs will be better suited if you want to avert risks and have a steady source of income.
What is lumpsum investment in ELSS?
Making a lumpsum investment at the start of a financial year can help an investor earn substantial tax benefits under Section 80C of the Income Tax Act, up to Rs. 1.5 Lakh from the total taxable income, which can be filed with Income Tax return. It allows greater returns as well for long-term investments in ELSS.
Who should invest in ELSS mutual funds?
Generally, ELSS Mutual Funds are suitable for all kinds of investors who are willing to take market-linked risks for tax planning and saving money. Anyone can invest in ELSS funds at any point of time in their life.
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.