Is equity and ELSS same?
ELSS vs Equity Funds? Typically, ELSS or Equity Linked Savings Scheme is a type of Equity Mutual Fund that offers tax benefits along with providing good market linked returns. For this reason, ELSS funds are also termed as a Tax Saving Mutual Funds.
Which is better ELSS or equity?
Returns earned While ELSS fund, historically is known to provide an average return of 10\% to 15\%, in three years, the returns may vary based on the market condition. The Equity mutual funds, on the other hand, are known to provide slightly higher returns than ELSS funds.
Is ELSS better than normal mutual fund?
You cannot compare an ELSS with a mutual fund. An ELSS is also a mutual fund that offers tax deductions of up to Rs 1,50,000 a year under Section 80C of the Income Tax Act, 1961. The only difference between an ELSS and other mutual funds is that the later doesn’t offer tax benefits.
Which is best mutual fund?
The table below shows the best equity funds:
| Mutual fund | 5 Yr. Returns | 3 Yr. Returns |
|---|---|---|
| ICICI Prudential Technology Fund | 33.71\% | 44.16\% |
| Aditya Birla Sun Life Digital India Fund – Growth-Direct Plan | 33.96\% | 43.89\% |
| TATA Digital India Fund DIRECT Plan Growth | 35.85\% | 43.73\% |
| SBI Technology Opportunities Fund – Direct Plan – Growth | 30.57\% | 40.41\% |
What is an ELSS mutual fund?
ELSS is one of the categories of Equity Mutual funds. The only difference is that these funds come with the mandatory lock-in period of 3 years and provides tax exemption. When you invest in an ELSS Mutual funds, you can avail the tax deduction under sec 80c.
What are the different types of equity-linked mutual funds?
Within equity-linked mutual funds, there are different types of funds that are categorised based on the risk levels, such as ELSS (Equity-Linked Savings Scheme), Sectoral Funds, Diversified equity funds, and Thematic funds. Amongst other types of equity-linked mutual funds, two of the most popular funds is the Equity mutual fund and ELSS.
What are the features of equequity linked savings scheme?
Equity Linked Savings Schemes (ELSS) have some unique features: 1 3 years lock-in period while equity funds have no lock-in period. 2 Tax Deduction in investments upto INR 1,50,000 under section 80C of the Income Tax (IT) Act. 3 As per the Budget 2018, Gains up to INR 1 lakh are free of tax. Tax at 10\% applies to gains above INR 1 lakh.