Save taxes every year with ELSS

Save taxes every year with ELSS

Mutual funds are one of the best choices for investors who need to fulfill their financial needs. It is really easy to invest, and it is available widely. You can pick it based on your requirements. So, you can start investing in the mutual fund today in order to multiply your happiness.

Equity Linked Saving Scheme will help investors in saving taxes. You have to make an investment in ELSS which are subjected over a lock-in period of three years. It is considered to be one of the best options which are available to create wealth for the long term. In addition to that, one can avoid the troubles of last-minute tax planning.

Who should invest in ELSS?

Salaried individuals: If you are an employee who avails salary, then the specified amount will go towards EPF. ELSS is the best option if you need to balance the risk and return it over your investment portfolio.

First-time investors: In case if you are new to the investment market, then ELSS is your ideal choice. Apart from the tax benefits, one can gain a flavor of equity investing. You have to start investing in monthly SIPs. It helps you to accumulate the units if the market is red.

About ELSS fund features

  • Lowest lock-in period: In the market, there are many tax-saving products are available. But not all of them are reliable, and they will be having more than five years of the lock-in period. With ELSS, you can get the tax benefit with a minimum of three years' lock-in period.
  • Tax saving: It is one kind of mutual fund which offers deduction up to a considerable amount from their total income.
  • Growth and dividend: You can pick to invest in either the growth or the dividend option, and it totally depends on the requirement. If you choose the growth option, your money will keep on growing till you redeem it. In the case of dividend, it is being paid in the dividend pay-out option.

Benefits of ELSS

  • After completing three years of the lock-in period, one can withdraw 100 percent of it.
  • It offers flexibility for investing through lump sum mode or SIP.
  • If you need to save your tax, the ELSS is the better option.
  • In ELSS, there is no limit for investing.

At FINAKART, our experts will assist you in investing in the ELSS. So, you can gain better returns.