Report Wire - ELSS mutual funds: Top 5 causes to spend money on equity-linked saving schemes

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ELSS mutual funds: Top 5 causes to spend money on equity-linked saving schemes

2 min read
Tax saving schemes: ELSS mutual funds are good way to get exposure of equity market. (AFP)

ELSS mutual funds: Equity linked saving schemes are tax saving mutual funds, which helps an investor beat inflation progress in long run. This tax saving scheme is an fairness mutual fund with three yr lock-in with revenue tax profit underneath part 80C of the revenue tax act. Like some other fairness mutual funds, an investor can invent in ELSS mutual funds in SIP mode with minimal month-to-month SIP of ₹500.

Speaking on ELSS mutual funds, Sujit Bangar, Founder at Taxbuddy.com mentioned, “ELSS mutual fund is a good instrument option for equity investors who want to save tax and grow wealth in tandem. It is a tax saving mutual funds investment instrument as an investor can claim tax exemption under section 80C on up to ₹1.5 lakh investment in single financial year.”

Sujit Bangar of Taxbuddy.com listed out following 5 causes that makes this tax saving mutual funds a very good funding choice for an incomes particular person:

1] Three years lock-in: It comes with lock in of three years. So robotically you keep invested for longer length to get good returns.

2] Direct funds choice: Like any fairness mutual funds, ELSS mutual funds too present direct fund choice to an investor. With decrease expense ration, these mutual funds permit most funding as bills in such mutual funds are very low.

3] Exposure to fairness funding: “ELSS is good way to get exposure of equity market. I think it’s first step towards building equity as asset class in your portfolio,” mentioned Sujit Bangar.

4] Provision for tax free revenue: The achieve which you earn on ELSS are tax free to the extent of Rs. 1 lakh in a single yr. If achieve is exceeding past one yr, the features can be taxed at 10 per cent.

5] SIP choice: ELSS will be began with as low month-to-month SIP as ₹500. So it makes simple to begin on behavior of saving.

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