Tag: Equity Linked Savings Scheme

Equity Linked Savings Scheme or ELSS are mutual fund schemes. They serve the dual purpose of tax saving as well as an investment option.

ELSS is simply investing in a tax saving mutual fund scheme in a consistent and regular manner at regular intervals. You may choose any amount of your choice to invest at fixed intervals of weekly,fortnightly,monthly of quarterly.

ELSS has a  minimum mandatory lock-in period of three years. This means that you have to keep the capital invested for minimum of three years before you can redeem that amount.

The lock-in period of ELSS is very short compared to conventional tax saving options. Coventional tax saving options are provident funds, national saving certificates etc. They have lock-in period around 5-7 years.

Equity Linked Savings Scheme can be a very good tool for wealth creation along with tax savings if you invest consistently and regularly.

Above all, there are also market related risks associated with the ELSS, similar to mutual funds.

How to Invest in ELSS ?

If you invest in ELSS, you get the dual benefits of savings on income tax as well as higher returns on investment. Lock-in period of ELSS is also not very long. As the financial year nears its end,every individual or investor starts looking for tax saving options. An option which …

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5 Tax Saving Investment Options

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