How many ELSS funds should I 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 many funds are recommended for ELSS under Msfl mutual fund model portfolio?
They believe that investors should not invest in more than two ELSS funds in a year. Investments in ELSS or tax saving mutual fund schemes qualify for tax deduction of up to Rs 1.5 lakh under Section 80C of the Income Tax Act.
Are ELSS funds multi cap?
Such a mix of stocks confirms that, ELSS is a multi cap fund where majority if of large cap stocks.
How many ELSS funds should you invest in in a year?
Since you can save only up to Rs 1.5 lakh in a year, one scheme is fine,” says P Srinivasan, Founder of Ace Financial Advisories. Many mutual fund advisors second the opinion. They believe that investors should not invest in more than two ELSS funds in a year.
Should you choose a new ELSS scheme?
Many investors choose a new ELSS when their old tax saving scheme is not performing well for a year or two. This may result in several schemes in a mutual fund portfolio. In fact, many mutual fund investors eventually own more than half a dozen ELSS funds in their portfolio.
Do you have to sell ELSS after 3 years?
Many mutual fund investors believe that they must sell their investments in an Equity Linked Savings Scheme (ELSS) after three years. They seem to believe that like all tax-saving investments ELSS matures after the mandatory lock-in period and investors are supposed to sell their investments at that time.
What is ELSS (equity linked saving scheme)?
As the name suggests, Equity Linked Saving Scheme or ELSS is a type of mutual fund scheme that primarily invests in the stock market or Equity. Investments of up to 1.5 Lac done in ELSS Mutual Funds are eligible for tax deduction under section 80C of the Income Tax Act.