Is ELSS a good investment option?
It is one of the best investment options that offer tax benefits with potentially higher returns and short lock-in period (3 years). The Long-Term Capital Gains on ELSS are tax-exempt up to Rs 1 lakh, and dividend received is tax-free in the hands of investors.
Is ELSS good for long term investment Quora?
Equity Linked Saving Scheme (ELSS) is good for long term. ELSS has 3 year lock in period. Any investment should be minimum 3 year.
Can I invest in ELSS for 20 years?
Being a flexicap fund, ELSS funds get the flexibility to change their portfolio as per the economic cycle and market conditions. Hence, these funds have the potential to deliver higher returns in the long term. If you stay invested in an ELSS fund for 10-20 years you can easily expect a compounded return of over 10\%.
How much should I invest in ELSS?
If you want, you can invest up to Rs. 1.5 lakhs per fiscal year in an ELSS scheme and bring down your gross taxable income. As per Section 80C of the Indian Income Tax Act, 1961, investments made in tax saving instruments like ELSS are eligible for a tax deduction.
Which is better PPF or ELSS Quora?
Whereas ELSS is a mutual fund with tax saving benefit. PPF has a lock-in period of minimum of 15 years, whereas ELSS has a lock-in period of minimum of 3 years. Being a mutual fund, ELSS is subject to market risk and is a high-risk instrument, whereas PPF is a low-risk instrument.
How much should I invest in ELSS to save tax Quora?
Well, as per the Income Tax Act, Section 80C, if you invest an amount of Rs 1,50,000 per annum in tax-saving investments like ELSS (Equity Linked Saving Scheme) mutual funds, PPF (Public Provident Fund), or others, it helps you save tax.
What are the tax benefits of investing in ELSS?
An ELSS comes with a statutory lock-in period of 3 years and qualifies for a tax exemption under section 80C of the Income Tax Act which allows a maximum tax exemption of Rs. 1,50,000. The returns on ELSS funds are subject to a long term capital gains tax (LTCG) at 10\%. However long term capital gains up to Rs. 1 lakh per year are exempt from tax.
What are the best ELSS funds to invest in 2020?
Best ELSS Funds to Invest in 2020 Fund Name Returns (\%) Returns (\%) Returns (\%) Returns (\%) Fund Name 1 year 3 year 5 year 10 year Axis Long Term Equity -0.44 6.29 8.82 14.02 Mirae Asset Tax Saver 10.12 7.52 — — Invesco India Tax Plan 5.82 5.83 8.76 11.21
How long should you remain invested in ELSS?
To avail the tax benefit provided by ELSS, an investor should remain invested in the scheme for a minimum duration of 3 years. This inculcates good investing habits amongst consumers, who find it hard to save.
Why ELSS is better than other 80C funds?
All in all, ELSS offers more liquidity in the medium term. Unlike ELSS where return is market linked, other 80C investments like PPF or FDs are fixed income products. ELSS has the potential to generate significantly higher wealth in a medium to long-term investment horizon.