What does ELSS stand for in mutual funds?
ELSS or Equity Linked Saving Scheme funds are tax saving mutual funds, in which the majority of the funds are invested in equity schemes. The investments in ELSS receive tax benefit under section 80C of the Income Tax Act. What is the lock-in period in ELSS Mutual Funds? ELSS Mutual Funds have a lock-in period of 3 years.
Are there any tax benefits to investing in ELSS?
If one wants to balance out risk & return on their investment portfolio then ELSS is the best option. In addition to the upside of extraordinary returns, investments in ELSS are also eligible for tax deduction under section 80C.
What do you need to know about an ELSS calculator?
As the name suggests, it is a type of open-ended equity fund. What is an ELSS Calculator? An ELSS Calculator is a tool that helps in determining the returns of an ELSS depending upon the type of scheme and whether one makes a lump sum investment or a SIP.
How does equity linked saving scheme ( ELSS ) work?
ELSS Mutual Fund 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.
Which is the best way to invest in ELSS?
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.
How much tax benefit can I get from ELSS?
Under section 80C, one can avail tax benefit of upto ₹46,800 by investing upto ₹1.5 lakhs per year in ELSS. You can also invest more than ₹1.5 lakhs in ELSS, but tax benefit can not be availed on the investment exceeding ₹1.5 lacs.