Table of Contents
Is it advisable to invest in ELSS?
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 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.
How do I get proof of ELSS investment?
Investment Proof: You can get investment proof for mutual fund investments by getting your statements from your distributor. Alternatively you can get a consolidated email statement for all your mutual fund investments, including your ELSS funds emailed to your inbox.
Are ELSS funds high risk?
Although ELSS funds have the highest potential to generate returns when compared with other tax-saving products, these returns come with an element of risk. This is because equity is considered to be a risky asset class exposed to volatility and market fluctuations.
Can we continue ELSS after 3 years?
The lock-in period of lump-sum investment ends after the end of three years from the investment date. 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.
Which ELSS is best to invest in 2021 Quora?
Mirae Asset Tax Saver Fund: It is one of the better performing funds in the ELSS tax saving category and remains the best fund for the year in 2021. Over 23\% return in 2020 is remarkable….
- Axis long term equity plan.
- DSP tax saver fund.
- Aditya Birla tax saver plan.
- Mirae asset tax saver.
Can I pause my ELSS SIP?
Yes, it is possible to stop your SIP investments in mutual funds, including your equity linked saving schemes (ELSSs). You just need to fill up the form – the procedure is the same if you have invested offline. If you have invested online, you can visit the funds’ website and cancel your SIP.
Should you invest in ELSS funds to save tax?
But, the other big benefit you get for investing in ELSS funds is the fact that you can claim up to Rs 1.5 lakh tax deduction under Section 80C. No other mutual fund provides you this benefit. So, if you are in the highest income tax bracket of 30\%, you can save Rs 46,800, including 4\% cess in income tax.
Why ELSS funds are better than other section 80C instruments?
Hence, being invested in equities, ELSS funds have the potential to generate higher returns other Section 80C instruments like Public Provident Fund (PPF), National Savings Certificate (NSC) and tax saving bank fixed deposits over the long term.
How to invest in ELSS through an SIP?
Like all other mutual funds, it is easy to invest in ELSS through an SIP. You can start an SIP for an ELSS mutual fund for as low as Rs 500. And like other mutual funds, as and when your income increases you can increase your investment amount through SIP top-up.
Why do ELSS funds have a 3-year lock-in period?
The 3-year lock-in period in ELSS funds also reduces the redemption pressure for their fund managers during volatile markets. This allows their fund managers greater flexibility to take a more long term view while dealing with market volatility with respect to other open-ended funds.
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