Can we invest in ELSS through SIP?

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Can we invest in ELSS through SIP?

ELSS is an investment vehicle in itself while SIP is not, it is instead a way of investing not only in ELSS but also in any other mutual fund. Therefore, ELSS cannot be compared with SIP as it’s not an apple to apple comparison.

How do I invest in ELSS mutual funds?

You can invest in ELSS the same way that you invest in any Mutual Fund. The easiest way is through an Online Investment Services Account. You can invest either as a lump sum or via the SIP (systematic investment plan) route.

How can I invest in ELSS without brokerage?

You can buy or redeem online. But remember ELSS have lock-in period of three years….To invest in ELSS without brokerage you need to compile the following documents:

  1. PAN (Self attested copy )
  2. Address proof (Self attested copy )
  3. ID proof (Self attested copy )

Can SIP be used for tax-saving?

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SIPs can be one of the best tax-saving instruments with high returns on your investments. You can claim a deduction of up to Rs. 1.5 lakh from your taxable income for investing in ELSS through SIPs under Section 80(C) of The Income Tax Act, 1961. With the highest tax slab of 30\%, you can save up to Rs.

Can I declare SIP under 80C?

You can initiate an SIP into an ELSS, the most popular tax-saving investment under Section 80C of the Income Tax Act, 1961. Every SIP instalment into an SIP counts towards tax deductions under Section 80C. You can claim a tax rebate of up to Rs 1,50,000 and save up to Rs 46,800 a year in taxes.

How does SIP in ELSS work?

A monthly SIP in an ELSS fund ensures that you invest a portion of your earnings while avoiding paying taxes. As a result, it instills the habit of frequent investment and ensures that your money works for you. Because ELSS is an equity investment, it is highly volatile in the near term.

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Which SIP is tax free under 80C?

ELSS
Which SIP is tax free under section 80c? 80C allows deduction upto Rs 1.5 lakh for investment made in ELSS (equity linked savings scheme). You can also start SIP for ELSS mutual funds for which deduction upto Rs 1.5 lakh will be available u/s 80C.

Should I invest in SIP or ELSS funds?

While investing in ELSS funds SIP is always recommended because you will not be burdened with investing all amounts at once. I0074 will also give you benefit of rupee cost averaging. We appreciate that an investment of Rs.1,50,000 p. a. would help investors save a substantial amount on taxes every year.

What is ELSs and how does it work?

An ELSS is an Equity Linked Savings Scheme, that allows an individual or HUF a deduction from total income of up to Rs. 1.5 lacs under Sec 80C of Income Tax Act 1961. Thus if an investor was to invest Rs. 50,000 in an ELSS, then this amount would be deducted from the total taxable income, thus reducing her tax burden.

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What is the lock-in period of ELSS?

Thus if an investor was to invest Rs. 50,000 in an ELSS, then this amount would be deducted from the total taxable income, thus reducing her tax burden. These schemes have a lock-in period of three years from date of units allotment.