Is ELSS fund good for long term investment?
ELSS is the only investment option that not only provides tax deductions under the provisions of Section 80C of the Income Tax Act, 1961 but also helps in wealth growth. The equity exposure of the ELSS funds gives you an opportunity to earn excellent returns on staying invested for at least five years.
Is it good to invest in ELSS when market is high?
At the time when the lock-in period ends, if the NAV of ELSS funds are lower than buying price, it’s better to wait another 1-2 years or even more time to redeem when the market bounces back. Some investors use ELSS to fund their retirement or a long term plan.
Is ELSS better than NPS?
Even though NPS offers tax benefits of up to Rs 2 lakh a year, as opposed to the ELSS tax benefits of up to Rs 1.5 lakh, ELSS is still the better investment option. The latter provides flexibility and the opportunity to earn higher returns with a lock-in period of only three years.
Can I stay invested in ELSS after 3 years?
Yes, since the ELSS investment has completed five years, you can withdraw the first year’s investment and re-invest it. Long term capital gains tax would be applicable for capital gains of more than Rs 1 lakh in a financial year.
Can we stay invested in ELSS after 3 years?
For example, One can redeem the 60 units (NAV Rs. 500 and Rs. 30,000 invested on 1st Mar 2017) of mutual funds after 1st March 2020. However, if the investment is made in the SIP of ELSS funds, then the lock-in period shall end after three years of every SIP instalment.
Can ELSS give negative returns?
You can have good returns, but there are also chances of an investor making low to negative returns hence don’t invest in an ELSS if your time horizon is 3 years. Invest for the Long term….
| NIFTY 500 Index: 10-Year Rolling Return Range | |
|---|---|
| Maximum return | +26.6\% |
| Median return | +16.2\% |
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