Good Evening Friends!
Did You Know - ELSS Is The Key To Get Excellent Returns,
ELSS, Equity Linked savings Schemes as they are called are investments in mutual fund schemes which give you tax benefits under section 80C. These schemes are meant to encourage retail investors to invest in equity-based mutual fund schemes.
The funds are locked in for a period of 3 years from the date of investment, which also means that an investment in ELSS through the SIP mode will mean that each individual SIP will be locked in for 3 years from the respective date.
Here the fund manager can take decisions to invest in those companies too where s/he knows that these
will perform but their performance may not be visible in the stock prices over the near term, but there is no pressure on redemption as there is a 3-year lock-in.
While MF advisors, as well as investors, tend to look at these mostly from the tax savings perspective, there is no reason why these schemes cannot be used for creating a long-term corpus for meeting one’s goals, keeping in mind the nature of these investments.
The funds are locked in for a period of 3 years from the date of investment, which also means that an investment in ELSS through the SIP mode will mean that each individual SIP will be locked in for 3 years from the respective date.
Here the fund manager can take decisions to invest in those companies too where s/he knows that these
will perform but their performance may not be visible in the stock prices over the near term, but there is no pressure on redemption as there is a 3-year lock-in.
Yes, amongst the various tax saving options listed under section 80C, ELSS give you the highest returns as compared to PPF, Life Insurance, NSC, Bank Deposits, with due respect to the respective benefits of each of the other choices listed.
Regards
Anil