Which scheme is best for lumpsum investment?
What Are the Best Mutual Funds for Lumpsum Investment?
| Fund Name | Fund Category | 5 Year Returns |
|---|---|---|
| Quant Tax Plan | ELSS | 23.92\% |
| PGIM India Flexicap Fund | Flexi-cap Funds | 20.62\% |
| Mirae Asset Emerging Bluechip Fund | Large and Midcap Funds | 21.74\% |
| PGIM India Midcap Opportunities Fund | Midcap Funds | 21.42\% |
How do I invest in a lump sum?
There are two ways to invest this amount:
- Start a monthly SIP of an amount that you are comfortable with, and this could be Rs 10,000, Rs 20,000, or Rs 50,000. Let the money stay in your bank account till all of it gets invested systematically in the chosen equity funds.
- Invest the lump sum in a liquid fund.
Is it right time to invest in ELSS?
At the time when the lock-in period ends, if the NAV of ELSS funds are lower than buying price, it’s better to wait another 1-2 years or even more time to redeem when the market bounces back. Some investors use ELSS to fund their retirement or a long term plan.
Should you invest in ELSS funds?
Investing in ELSS is ideal for new investors as they build a habit of investing while being exposed to significantly less risk. As they invest a smaller but fixed sum over a longer time frame, they gain exposure to the stock market and equity-linked schemes.
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.
What is ELSs and how does it work?
ELSS, or Equity Linked Savings Scheme, is one of the most sought-after Mutual Fund schemes in the Indian financial market. It can act as an excellent capital boosting investment other than being eligible for substantial tax benefits as per Section 80C of the Income Tax Act of India.
Should you invest in sips or lumpsum payments?
Whereas if you have a large corpus of funds available, you can invest in Mutual Funds via Lumpsum payments. It will also help you save taxes for a financial year if you make the investment before the month of May. SIPs are usually more suited for investment in volatile markets.
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