21 August 2018
Why one should choose ELSS Mutual fund Scheme???
1] To save Tax
By investing in ELSS, you can save up to Rs. 15000 per annum in taxes. Also there is the benefit of investing in equities. Equities can be one of the most important tools for creating wealth. So ELSS, essentially kills two birds with one stone. You can reach your long term financial targets while also doing each year’s tax planning.
2] Tax liability is less….
In ELSS, the returns which you generate are tax free upto Rs. 1,00,000! This is not the case in any other tax saving instrument wherever you earn interest on your tax saving investment. Tax on interest is calculated from the first Rupee you earn as interest. Not so in case of ELSS.
3] Sabse kam Lock in period
This is an investment option where money is locked only for three years. There is no other tax saving instrument with such a less lock in period. So while you plan for your taxes in any year, that money is available to you after the third year itself in case of ELSS.
Investment in ELSS can be as flexible as you want. Investment can be done on any working day in the entire year, for very small amounts and any number of times. The smartest and most successful investors are those who have remained invested in the market for long period of time and have regularly invested small amounts in the markets. Over a long period time, the wealth created by the small investments in manifold the investment itself.