Home >>ACMIIL Home >> ACMFSL Home >> ACMRES Home >> Resume Status Home >> Apply Now Home >> Culture Home >> Current Opening Home >> Deenas World Home >> Faq's Home >> Financial Terms Home >> Five W’s of Investment Home >> Health Checkup Home >> Investmentz Online Home >> Management Team Home >> Media Corner Home >> NRI Center Home >> Register Now Home >> Research Home >> FAQ's Home >> Knowledge Support Home >> Why Investmentz Home >> Sitemap Home >> Career Home >> Gallery Home >> Feedback Home >> Disclaimer Home >> Privacy Home >> Services Home >> Tools & Platforms Home >> Investment Products Home >> About Us Home >> Contact Us Home >> Download Home >> Security Home >> My Subscription Home >> Retail Investors Home >> NRI Investors Home >> Institutional Investors Home >> Corporate Clients Home >> Bank Home >> Alternate Investment Fund Home >> Financial Planning Home >> Investment Advisory Home >>Portfolio Tracking


  Change Font Size: A+ A-

Why invest in ELSS the SIP way to save taxes?Overall RATE RATE (0.00)

Whenever most of us look for tax savings options during the time the taxman knocks our door, we tend to wittingly or unwittingly ignore ELSS as a tax savings instrument. Equity Linked Savings Scheme (ELSS) is a diversified equity mutual fund where major chunk of the corpus is invested into the equity market.

If you start investing in ELSS through the SIP route, each investment will envisage a lock-in period of 3 years from the date of investment. ELSS funds offer you two options – growth and dividend. In the growth option, you get a lump-sum amount after the completion of the lock-in period. In the dividend option, the investor gets dividend whenever a fund announces dividend even if it is in the lock-in period.

ELSS is becoming an increasingly popular instrument to save taxes, especially through the SIP route, let’s find out why it could be a useful investment for you.

One instrument, two benefits

ELSS provides you with the twin benefits of having the market edge owing to equity exposure your money enjoys coupled with the tax benefits under section 80C. Therefore, with ELSS, you are not just parking your funds in a plain vanilla instrument to just gain from tax savings. ELSS opens the option of earning stronger returns as well while you save your taxes.

Low lock-in period

ELSS has low lock-in period of just three years compared with other popular tax savings instruments such as PPF (15 years), NSC (6 years), tax-savings FD (5 years). Therefore, ELSS enjoys high liquidity.

Superior and tax-free returns

Out of all the tax savings options available under section 80C, returns from ELSS and PPF are tax-free. That said, ELSS provides you with the best returns simply due to its market edge. Returns from NSC and tax-savings FDs are taxable. Hence, ELSS gives you the best returns.

Gateway to equity investment

If you have certain inhibitions about investing in the mutual funds and have not invested either directly or indirectly into the equity markets, ELSS is the best way for you to start your equity journey. If you invest in the markets either directly or indirectly, a small rise or fall in the markets can trigger a wrong selling decision. This is where ELSS comes in handy. A lock-in period of 3 years in ELSS keeps you tied down and you can see clear returns over a period of three years. If you look at the last two decades, ELSS has provided the best returns compared with all the other tax savings instruments under 80C.

Therefore, go the SIP way to invest in ELSS now to save taxes and get superior returns while averaging out your market risks. If you want to know more about top ELSS schemes or want to start your financial planning, please gives us a missed call on 08010968308  or write to us at investmentz@acm.co.in


Written by : blog admin

Today’s Poll

Today’s Poll
Will the 'bears' stop the 'bulls' from making new highs?

Most Read

3 simple steps to financially secure th... by blog admin 01-Jan-2018, 00:00 Hours IST
Make National Pension Scheme your gatew... by blog admin 11-Jan-2018, 00:00 Hours IST
SEBI Reg. Nos | BSE CM:INB 010607233 & Derivatives:INF 010607233 | NSE CM:INB 230607239 | Derivatives INF 230607239 & Currency Derivatives INE 230607239 | MCX SX INB 260607230 | Derivatives INF 260607230 and Currency Derivatives INE 260607230 | DP: IN-DP-CDSL-28-99 and Merchant Banking INM000010973.