Are mutual funds and ELSS same?

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Are mutual funds and ELSS same?

An ELSS or equity-linked mutual fund is an equity mutual fund. It invests a significant amount of its corpus in the stocks of listed companies. Just like other equity mutual funds it is subject to market risk. ELSS has the potential to deliver long term capital appreciation.

Why is equity linked saving scheme deemed better than other tax saving instruments?

Shortest Lock-in Period: ELSS has the lowest lock-in period of 3 years among all the other tax saving options. Certain Equity Linked Saving Schemes have given more than 15\% in returns. This will help you beat inflation which is about 6\%. Lower Tax on Capital Gains: Capital gains under ELSS is taxed at a lower tax rate.

Which are equity linked saving schemes?

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.

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Is ELSS an equity fund?

ELSS is one of the most popular tax-saving investments under Section 80C of Income Tax Act, 1961. An ELSS is an equity-oriented fund that invests at least 65\% of its portfolio in shares. On the other hand, SIP or a systematic investment plan is the best way to invest in a mutual fund.

Which is better sip or ELSS?

Conclusion. 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.

Which is the best ELSS to invest in 2020?

Invesco India Tax Plan.

  • Aditya Birla Sun Life Tax Relief 96.
  • DSP Tax Saver.
  • Kotak Tax Saver.
  • ICICI Prudential Long Term Equity Fund.
  • Motilal Oswal Long Term Equity.
  • Tata India Tax Savings. Uses a blend of growth and value styles of investment.
  • Nippon India Tax Saver. Aims at generating sustained long term growth.
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    How much money should I put in ELSS?

    Similarly, in case of lump-sum investment in ELSS mutual fund, the investment amount should be Rs 150,500 to avail the full benefit. For instance, as per Mirae Asset Mutual Fund’s website, the minimum investment amount in Mirae Asset Tax Saver Fund is Rs 500 and in multiples of Rs 500 thereafter.

    What is ELSS (equity linked saving scheme)?

    Equity Linked Saving Scheme (ELSS) is a type of Mutual Fund where investments are made in Equity. The major difference between ELSS and a normal Mutual Fund is the tax benefit that an investor gets for investing in an ELSS.

    What is the difference between ELSs and a normal mutual fund?

    The major difference between ELSS and a normal Mutual Fund is the tax benefit that an investor gets for investing in an ELSS. Key differences-. Lock- in –In ELSS there is a minimum lock-in period of 3 years in any/all ELSS schemes.

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    What is equequity linked saving scheme?

    Equity Linked Saving Scheme (ELSS) is a type of Mutual Fund where investments are made in Equity. The major difference between ELSS and a normal Mutual Fund is the tax benefit that an investor gets for investing in an ELSS. Lock- in –In ELSS there is a minimum lock-in period of 3 years in any/all ELSS schemes.

    Are ELSS mutual funds liable for tax deductions?

    Investments upto INR 1,50,000 in ELSS Mutual Funds are liable for tax deductions from the income, as per Section 80C of the Income Tax Act. Though ELSS is a type of Equity Funds, it offers various unique features that make it different from the usual equity funds.