ELSS is a saving scheme associated with equity. Investment options for ELSS are for tax advantages under section 80C. Here are some statistics that are sure to help with your decision to invest.
What tax advantages are there?
You are liable for the tax gain under section 80C if you have invested 1 Lakh in ELSS Funds. If you redeem your investment after the tax benefit, no tax benefit will be preserved.
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The key picture behind the tax advantage in ELSS funds is that ELSS investment alone accounts for more than 65% of the corpus invested in inventories. So they deliver high capital and long-term benefit.
Are you going to get guaranteed returns?
The principal reason behind any investment in ELSS is the return. If you are new to the first market review of market figures, read what has happened in the past few years on the market.
The returns are disrupted by the diversification in the market. You might even get heavy returns or you might lose money, too.
The average return ranges from 6.82% to 13.5% in the current scenario. Smartness lies in choosing the best scheme on the market out of many. The most significant key to choosing the right stock is the Fund Manager.
What’s the lock-in time here?
Under section 80C, the shortest span for all schemes is 3 years. Under this time, if you do so, your current policy will be terminated and you will not get tax benefit, you can not turn to any other policy.
In this, each installment with a locking duration of 3 years is viewed as a separate investment.
If you want to stay invested for a longer time, you can do so in certain types of funds such as ULIPs and pension plans. There is no maturity time.
How are you to invest?
You can only invest an initial sum of Rs 500 in the ELSS fund. Investing by daily investments, called SIPS, is the safest way to invest a large amount.
For instance, if you have an amount of 15,000, then You will invest in three payments of 5,000 each, which will triple the amount of your return and reduce the risk factor.
