Home Economy Why and how to invest in Equity Linked Savings Scheme in 2022 By: Deepak Jain, Head – Sales, Edelweiss Asset Management Limited

Why and how to invest in Equity Linked Savings Scheme in 2022 By: Deepak Jain, Head – Sales, Edelweiss Asset Management Limited

by News Monks
A+A-
Reset

ELSS (Equity Linked Savings Scheme) is a mutual fund that provides tax benefits to investors under Section 80C of the Income Tax Act. It is a popular investment option among individuals who are looking to save on their taxes while also earning potentially higher returns on their investment. ELSS funds invest a minimum of 80% of their portfolio in equity and equity-linked securities, which may also increase the volatility. Over longer term we have seen that the benefits are commensurate with the underlying risk.

 

One of the main advantages of investing in ELSS funds is the tax benefits that they offer. Investors can claim a tax rebate of up to Rs. 1,50,000 under Section 80C, resulting in savings of up to Rs. 46,800 per year (as per old tax regime). This benefit is in addition to the returns earned by the investor.

 

ELSS fund can be withdrawn, fully or partially after as short initial lock-in period of 3 years, should there be a need to do the same. We encourage investors to stay invested for the long term and benefit from the power of compounding.

 

ELSS type of the investment fund options available for saving tax. It invests in equity and equity-related instruments and has a well-diversified portfolio across sectors with a multi-cap approach. The fund is managed by experienced professionals who aim to provide investors with inflation-beating returns over the long term.

 

Investors can choose to invest in ELSS funds via a lump sum or SIP (Systematic Investment Plan). A lump sum investment involves investing a large sum of money at once, while SIP involves investing a fixed amount of money at regular intervals. Investors can choose the investment route that suits their investment profile and requirements.

 

When choosing an ELSS fund, investors should undertake a comparative analysis of the equity-linked savings schemes being offered by the mutual fund houses. They should consider factors such as the fund’s investment objective, portfolio composition, past performance, and fund manager’s experience before making an investment decision.

 

Investors can set up an account with the mutual fund house or through a broker or investment app. The process of investing in ELSS funds is straightforward and can be completed online.

 

In conclusion, ELSS is an excellent investment option for individuals who are looking to save on their taxes while also earning returns on their investment. The short lock-in period, tax benefits, and potential for long-term wealth creation make ELSS funds an attractive investment option.

 

MUTUAL FUND INVESTMENTS ARE SUBJECT TO MARKET RISKS, READ ALL SCHEME RELATED DOCUMENTS CAREFULLY

An investor education initiative by Edelweiss Mutual Fund

All Mutual Fund Investors have to go through a onetime KYC process. Investor should deal only with Registered Mutual Fund (RMF). For more info on KYC, RMF and procedure to lodge/redress any complaints, visit – https://www.edelweissmf.com/kyc-norms

 

 

 

You may also like

Leave a Comment

Introducing NewsMonks, your premier source for comprehensive and concise news coverage. Dive into the world of business news, alongside a diverse range of other current topics. Stay informed, stay ahead with NewsMonks. Your go-to destination for news that matters.

 

Contact : +91 6351857103 (WA Only)

Email: newsmonnks@gmail.com 

 

Live Traffic

Edtior's Picks

All Rights Reserved by NewsMonks @2023.,
Powered by MediaHives.com