Equity Linked Savings Scheme: Difference between revisions
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'''Equity-linked savings scheme''' popularly known as '''ELSS''' are close-ended,lock-in period of 3 years diversified equity schemes offered by mutual funds in [[India]].<ref>http://economictimes.indiatimes.com/mf/analysis/tax-saving-recycling-your-elss-investments-is-a-very-bad-idea/articleshow/56512440.cms</ref><ref>[http://www.business-standard.com/article/pf/five-mistakes-to-avoid-when-investing-in-an-elss-fund-117011600370_1.html Five mistakes to avoid when investing in an ELSS fund]</ref> They offer tax benefits under the new Section 80C of Income Tax Act 1961.<ref>{{cite web|url=http://www.moneycontrol.com/mutual-funds/performance-tracker/returns/elss.html|title=Funds aimed at enabling investors to avail tax rebates under Section 80-C of the Income Tax Act.}}</ref> ELSS can be invested using both SIP([[Systematic Investment Plan]]) and [[lump sum]]s investment options.<ref>{{cite web|url=http://economictimes.indiatimes.com/wealth/invest/investment-in-sips-yields-better-returns-than-timing-the-market-study/articleshow/53257429.cms|title=Investment in SIPs yields better returns than timing the market: Study}}</ref><ref>{{cite web|url=http://www.rediff.com/getahead/2005/nov/09sip.htm|title=What's a mutual fund SIP?}}</ref><ref>{{cite web|url=http://economictimes.indiatimes.com/mf/analysis/should-you-invest-a-lumpsum-in-elss/articleshow/56474362.cms|title=Should you invest a lumpsum in ELSS?}}</ref> There is a 3 years lock-in period, and thus has better Liquidity compared to other options like NSC and [[Public Provident Fund (India)|Public Provident Fund]].<ref>http://articles.economictimes.indiatimes.com/2013-02-18/news/37160319_1_equity-fund-lock-in-period-growth-option</ref> |
'''Equity-linked savings scheme''' popularly known as '''ELSS''' are close-ended,lock-in period of 3 years diversified equity schemes offered by mutual funds in [[India]].<ref>http://economictimes.indiatimes.com/mf/analysis/tax-saving-recycling-your-elss-investments-is-a-very-bad-idea/articleshow/56512440.cms</ref><ref>[http://www.business-standard.com/article/pf/five-mistakes-to-avoid-when-investing-in-an-elss-fund-117011600370_1.html Five mistakes to avoid when investing in an ELSS fund]</ref> They offer tax benefits under the new Section 80C of Income Tax Act 1961.<ref>{{cite web|url=http://www.moneycontrol.com/mutual-funds/performance-tracker/returns/elss.html|title=Funds aimed at enabling investors to avail tax rebates under Section 80-C of the Income Tax Act.}}</ref> ELSS can be invested using both SIP([[Systematic Investment Plan]]) and [[lump sum]]s investment options.<ref>{{cite web|url=http://economictimes.indiatimes.com/wealth/invest/investment-in-sips-yields-better-returns-than-timing-the-market-study/articleshow/53257429.cms|title=Investment in SIPs yields better returns than timing the market: Study}}</ref><ref>{{cite web|url=http://www.rediff.com/getahead/2005/nov/09sip.htm|title=What's a mutual fund SIP?}}</ref><ref>{{cite web|url=http://economictimes.indiatimes.com/mf/analysis/should-you-invest-a-lumpsum-in-elss/articleshow/56474362.cms|title=Should you invest a lumpsum in ELSS?}}</ref> There is a 3 years lock-in period, and thus has better Liquidity compared to other options like NSC and [[Public Provident Fund (India)|Public Provident Fund]].<ref>http://articles.economictimes.indiatimes.com/2013-02-18/news/37160319_1_equity-fund-lock-in-period-growth-option</ref> |
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Revision as of 11:11, 27 October 2019
 | This article contains content that is written like an advertisement. (October 2019) |
Equity-linked savings scheme popularly known as ELSS are close-ended,lock-in period of 3 years diversified equity schemes offered by mutual funds in India.[1][2] They offer tax benefits under the new Section 80C of Income Tax Act 1961.[3] ELSS can be invested using both SIP(Systematic Investment Plan) and lump sums investment options.[4][5][6] There is a 3 years lock-in period, and thus has better Liquidity compared to other options like NSC and Public Provident Fund.[7]
Comparison between ELSS and other tax-saving methods
The comparative between ELSS and popular other tax-saving options in India:[8]
| Investment | Returns | Lock-in period | Tax on Returns |
|---|---|---|---|
| 5-Year Bank Fixed Deposit | 6 to 7% | 5 years | Yes |
| Public Provident Fund (PPF) | 7 to 8% | 15 years | No |
| National Savings Certificate (NSC) | 7 to 8% | 5 years | Yes |
| National Pension System (NPS) | 8 to 10% | Till retirement | Partially Taxable |
| ELSS Funds | 15 to 18% | 3 years | Partially Taxable |
Over the last 5 years, the ELSS funds have given annualised returns of around 12-13%. (Wealth18.com)
- Save up to Rs. 46,350* in taxes each year
- Invest in a diversified equity fund
- Don’t have to choose between reducing tax and investing for the future
- You have the option to put money every month
See also
References
- ^ http://economictimes.indiatimes.com/mf/analysis/tax-saving-recycling-your-elss-investments-is-a-very-bad-idea/articleshow/56512440.cms
- ^ Five mistakes to avoid when investing in an ELSS fund
- ^ "Funds aimed at enabling investors to avail tax rebates under Section 80-C of the Income Tax Act".
- ^ "Investment in SIPs yields better returns than timing the market: Study".
- ^ "What's a mutual fund SIP?".
- ^ "Should you invest a lumpsum in ELSS?".
- ^ http://articles.economictimes.indiatimes.com/2013-02-18/news/37160319_1_equity-fund-lock-in-period-growth-option
- ^ ClearTax. "ELSS Funds - Invest in Best ELSS / Equity Linked Savings Scheme Funds". cleartax.in. Retrieved 4 November 2018.
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