Worried during tax saving season? Here is the best solution for your tax saving woes which is ELSS!
Equity Linked Savings Scheme is one of the most popular tax saving investment options among other tax saving option under Sec 80C. You might be going through the last minute rush for tax saving around Jan-Feb each year. Most of the people get easily distracted by just looking at ‘tax saving’ tag on investments available in the market and invest in products which don’t add enough value.
We are here to tell you how to avoid the last minute rush along with earning great returns.
Below are a few advantages of ELSS mutual funds:
- ELSS scheme has the shortest lock-in period among other investment options available under Sec 80C.
- Most investment options available under SEC 80C are government-backed securities which usually have lower returns. Equity returns have been the most in the long run as compared to PPF, National Savings Certificate, post office schemes, etc.
- Low charges as compared to insurance schemes where your premium gets diluted into agent commission, management charges and hence get less value for your investments.
Investments in ELSS are available through SIP. If you start a Systematic investment plan in an ELSS, then each of your investments will be locked in for 3 years from the respective investment date. An investment of Rs.12.5k per month can help you save tax up to Rs.15K for the year in which investments are made. This is the best way to avoid the last minute rush during the Jan-Feb month.