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.
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 …
Common people participation into stock markets via Mutual Fund route is on the rise recently.The reasons are the plethora of advantages Mutual Funds offer with minimum risk.Increasing awareness and decent performance by the world stock markets is also contributing to this rise. Until few years back,the proportion of people going …
These 5 tax saving investment options serve dual purposes for you. Along with tax savings, they help in wealth creation in the long run. As the financial year nears its end every year,taxpayers start looking for tax saving instruments available.There are lots of conventional tax saving options available for the …