Is it good to invest lumpsum in ELSS?
Choosing ELSS will help you maximize tax benefits under Section 80C. Lumpsum investments will be better suited if you are investing at the end of a financial year, or if you have a higher risk appetite. On the other hand, SIPs will be better suited if you want to avert risks and have a steady source of income.
Is it worth investing in ELSS funds?
The equity-linked saving scheme invests in the stock market and the risk is similar to investing in the equity market. Mutual funds are now being regarded as one of the best investment options. ELSS investment qualifies for a tax deduction of a maximum of Rs 1.5 lakh per annum under Section 80C of the I-T Act.
What is ELSS (equity linked savings scheme)?
Equity Linked Savings Scheme (ELSS) is a type of mutual fund scheme that invests predominantly in the equity market. The fund is known to invest the majority of its block in equity and related funds while offering tax benefits to investors under Section 80C of the Income Tax Act.
How to start investing in ELSS funds?
Like all equity investments, the best way is to start investing in monthly SIPs through the year. SIP in a ELSS fund helps you to accumulate more units when the market is in red and generate exceptional returns when the markets are favourable. Read our blog on Why ELSS should be your first Mutual fund? to understand the benefits in detail. 3.
What is the lock-in period of ELSS mutual funds?
ELSS Mutual Funds have a lock-in period of 3 years. What is the maximum tax benefit that can be availed by investing in ELSS every year? Under section 80C, one can avail tax benefit of upto ₹46,800 by investing upto ₹1.5 lakhs per year in ELSS.
What are the benefits of ELSS?
The fund is known to invest the majority of its block in equity and related funds while offering tax benefits to investors under Section 80C of the Income Tax Act. ELSS is a diversified scheme which provides a balance between volatility and returns to investors.