Unlock Your Dream Tax Saving Investments Now!

Divy Jagetia | 4 min read
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Get expert help in selecting best suitable ELSS mutual fund for you.
Dreaming of an investment that not only grows your wealth beyond inflation but also saves you taxes?
Say hello to ELSS (Equity Linked Savings Scheme) - your financial superhero in the world of tax-saving mutual funds. Here's why ELSS could be your ticket to maximizing savings and wealth:
  • Lock and Load for Growth: With a 3-year lock-in period, your investment gets ample time to mature. But remember, your investments are locked-in for 3-years. Meaning you can not withdraw your money before 3-years.
  • Equity at Its Core: Diving deep into equity, ELSS ensures at least 80% of your funds are equity-linked.
  • Friendly Tax Treatment: After the lock-in, enjoy gains at just 10% tax-rate as Long Term Capital Gains (LTCG).
  • Outperforming the Old School: Forget the traditional PPF's long 15-year lock-in; ELSS historically have performed better in terms of returns and also come with a shorter lock-in (3-year).

Who's Invited to the ELSS Party?

Literally, anyone! Whether you're an individual or a HUF, you're eligible to dance at the ELSS party and claim deductions.

SIP or Lump Sum: The Investment Beat to Groove To

Decisions, decisions! ELSS offers the flexibility of SIPs and lump sums. Got a chunk of cash? Lump-sum might be your rhythm.
On a tighter budget? SIPs let you move at your own pace, but remember, each installment enjoys its own 3-year spotlight (lock-in).

The ELSS Playlist: Tunes to Invest In

Choosing the right ELSS fund can feel like picking the perfect playlist for your investment party. With 35 active ELSS funds vibing in India, making the right choice might seem daunting. Here's a sneak peek at some of the chart-toppers, but remember, past hits don't always predict future bangers. Consulting an expert might just be your ticket to making a sound choice.

Quick Beats:

A list of ELSS funds with stellar performances in the past. Note: This list is for reference and educational purposes only.
  • Quant ELSS Tax Saver Fund
  • Bank of India ELSS Tax Saver Fund
  • Parag Parikh ELSS Tax Saver Fund
  • SBI Long Term Equity Fund
  • Mirae Asset ELSS Tax Saver Fund
  • Kotak ELSS Tax Saver Fund
  • Bandhan ELSS Tax Saver Fund
  • Invesco India ELSS Tax Saver Fund
  • Canara Robeco ELSS Tax Saver Fund
  • DSP ELSS Tax Saver Fund
  • Motilal Oswal ELSS Tax Saver Fund
  • ICICI Prudential ELSS Tax Saver Fund
  • Nippon India ELSS Tax Saver Fund
  • Mahindra Manulife ELSS Tax Saver Fund
  • Edelweiss ELSS Tax Saver Fund
Get expert help in selecting best suitable ELSS mutual fund for you.

FAQs That Hit the Right Notes: ELSS Unplugged

  • Is ELSS a walk in the park? Well, it's the chart-topper of tax-saving investments, playing mainly in the equity arena. Ideal for those who get the rhythm of equity risks.
  • Freedom to Withdraw Post Lock-In? Absolutely! Post the 3-year gig, you're free to withdraw. Lump sums can exit stage right entirely, while SIPs take their final bow one act at a time.
  • How Much Equity Stage Does ELSS Cover? At least 80% of its portfolio is invested in the equity scene.
  • Tax Riffs and ELSS Funds: Diving into the tax pool, ELSS swims as a star. Locked in for three years, it dances away from short-term gains, inviting only the long-term players to the stage. Enjoy tax-free returns on gains up to ₹1 lakh, with anything above taxed at a 10% LTCG tax rate. Don't forget, the ₹1.5 lakh deduction under Section 80C is a group performance, including other financial instruments such as Provident fund(PF), PPF among others in the act.
Disclaimer: Investments in Mutual Funds are subject to market risk. Please read all the related documents carefully before investing.