Why Invest in ELSS? Stay Back for the Returns

Why Invest in ELSS? Stay Back for the Returns

The onset of mutual funds as an investment option is soon changing investment trends in India. With more and more potential investors realising the inherent benefits of investing in mutual funds, financial companies are introducing the best fund options to attract customers.

Certainly, mutual funds has its own valuable benefits that no other financial instrument provides such as:

• Diversified form of investment.
• Overcoming market volatility.
• Investment in instalments.
• Long term and short term return options, etc.

In this article, we bring to you one of the most sought after and popular forms of investment in mutual funds that more and more people are participating in- Equity Linked Savings Schemes or ELSS mutual funds.

Stay hooked to the article because not only do we tell you what this scheme of mutual funds is all about, but also why you should divert your resources towards this scheme.

What is Equity Linked Savings Scheme (ELSS)?

ELSS mutual funds are a type of fund wherein a major share of the corpus of money is invested in equity instruments. It is a diversified type of mutual fund and attracts a considerable portion of returns from equities.

Unlike other mutual funds, the ELSS mutual funds requires a mandatory lock in period starting from the date of your investment. This primarily means that your investment is for a fixed duration and withdrawal of funds within the stipulated period would not render any returns. However, an investor can surely exit the ELSS mutual fund after selling it off post the lock in period.

ELSS mutual funds are one of the top growing mutual funds in India. In fact, investing in ELSS mutual funds brings you in contact with the equity market which most people otherwise are reluctant to invest in its direct form such as stocks.

Let us now understand why you should invest in an ELSS mutual fund.

Why Invest in ELSS mutual funds?

Investment in ELSS mutual funds appears to be one of the most effective ways to increase your wealth and at the same time enjoy several other financial benefits as explained further in the article. There are a myriad of ELSS mutual funds that you can choose from.

Here are a few of the compelling reasons why you should invest in an ELSS mutual fund:

• Exposure to Equity Markets

Most people willing to invest in the equity market are apprehensive to do so because they either lack adequate knowledge or are misinformed about its prospects. However, investment in ELSS mutual funds helps you take your first step towards equity instruments. In fact, you can even avail professional opinion about your portfolio from your fund manager before you invest in any given mutual fund. This indeed is a good way to broaden your horizon of investments.

I am Madhura, I have total 10 yrs of experience in this mutual fund, Insurance world. with the sound knowledge of elss funds