Everything about ELSS Mutual funds

ELSS mutual funds are famously known for their tax-saving features in addition to being one of the sought-after mutual fund categories. Under Section 80C of the Income Tax Act, taxpayers can save up to Rs. 1.5Lakh in a deduction from income tax returns after investing in ELSS.

Moreover, other tax saving options under Section 80C have a higher lock-in period, ELSS Funds have a short lock-in period of 3 years, and have the potential to offer higher returns in the long run. Most of the tax-saving investment options have a minimum lock-in period of 5 years. This is another reason to consider ELSS investment. You can also invest through SIP or a systematic investment plan where you invest a small amount of money at regular intervals of time. This can also incorporate a habit of disciplined investment.

Choosing the correct investment options in the available market can be a little difficult. Always get professional advice from investment coaches to select the right funds to meet your goals.

As we all know how important it is to start investing at an early age, we are also aware of the fact that investing has its own ups and downs, we panic when the market falls, we switch our funds, we put a halt to our investments, and whatnot.

When you start investing, the most common investment tool being introduced to you will be mutual funds. Mutual funds are one of the most preferred investment options among investors all over the world. Mutual funds are nothing but pooled money invested in a variety of stocks, securities, and debts based on financial goals. Unlike other investment options, mutual funds are managed by experienced professionals. Moreover, mutual funds offer flexible options for everyone to invest in the form of lumpsum and SIPs. For instance, you can even start your SIP with as low as Rs.500 per month and build your wealth bit by bit.

Additionally, Mutual funds offer easy liquidity of the mutual fund units almost in a day or two except for the ELSS. ELSS are equity-linked saving schemes. The investments in ELSS up to Rs. 1.5 lakhs are tax deductible under Section 80C of the Income Tax Act. But the ELSS investments have a lock-in period of 3 years. These funds can be redeemed only after 3 years. Similar to other mutual funds, ELSS investments can also be done as lumpsum or SIPs based on your convenience. Therefore, if you are searching for a good investment product, start your mutual fund investment today!

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