How many ELSS funds should one invest in?
An ELSS fund usually invests in 50-70 stocks and having two such funds in your portfolio out to cover the diversification needs, say experts. Diversification is needed to spread the risk-reward of your investments in these funds.
How do I choose the best ELSS fund?
How to select the right ELSS fund and create wealth
- Market Cap Composition Of The Portfolio.
- Understand The Concentration Risk And Over-diversification.
- Check The Expense Ratio Of The ELSS Fund.
- Check The Basic Parameters.
- Compare The ELSS Fund With Other Equity Funds You Have Invested.
- Finally.
Which ELSS is best to invest in 2020?
Basis this parameter, these are the seven best ELSS mutual funds hand-picked by us:
- Axis Long Term Equity Fund.
- Invesco India Tax Plan.
- DSP Tax Saver.
- Kotak Tax Saver Fund.
- Mirae Tax Saver Fund.
- Canara Robeco Equity Tax Saver Fund.
- Motilal Oswal Long Term Equity Fund.
- The Bottom line:
How do you withdraw ELSS SIP after 3 years?
If you have made your ELSS Mutual Fund investment via the lump sum route, i.e., at one go, all your units will be allotted on the same day. And therefore, once the 3 year lock-in period is over, you can redeem your entire ELSS investment in one go.
How do I get ELSS investment proof?
Investment Proof: You can get investment proof for mutual fund investments by getting your statements from your distributor. Alternatively you can get a consolidated email statement for all your mutual fund investments, including your ELSS funds emailed to your inbox.
Who should not invest in ELSS?
You should not invest in ELSS if your investment time horizon is less than 5 years: While ELSS has a lock-in period of 3 years, you should not invest in ELSS if you cannot hold the investment for minimum 5 years since it is an equity fund and needs ample time to grow.
What are ELSS funds?
What are ELSS Funds? ELSS or Equity Linked Savings Scheme is a type of diversified equity mutual fund that is qualified for tax exemption under Section 80C of the Income Tax Act. Most investors prefer to invest in this mutual fund instrument as it offers capital appreciation and tax benefits as well.
How to claim tax benefits on mutual funds (ELSS)?
How to Claim Tax Benefits on Mutual Funds (ELSS) ELSS funds qualify for tax exemptions under Section 80C of the Income Tax Act. Deductions of up to Rs.1.5 lakh can be availed on the amount invested on ELSS funds. Supporting documents have to be provided by the policyholder to claim deductions.
Can taxpayer invest in ELSS Fund for Section 80C deduction?
Taxpayer can make various other investments to avail deductions in the Section 80C of the IT Act. But, the taxpayer can also invest just in the ELSS fund and avail the benefits. Maximum amount that is allowed for deduction in the Section 80C of the IT Act is Rs.1.5 lakh in a year.
How many ELSS mutual funds are there in India?
There are approximately 38 ELSS Mutual Funds in India. ELSS (Equity Linked Savings Scheme) funds are equity mutual funds with up to ₹1,50,000 under 80C tax deduction in a financial year. The gains are however, subject to LTCG tax when you sell. The fund has a 3-year lock-in which should not be a concern for long-term investors.