• Nifty %
  • Sensex %
  • Nifty Bank %
  • Equity
  • Mutual Fund
  • Currency
  • Commodity
  • Derivative
  • Research

MARKET SNAPSHOT

  • INDIAN
  • GLOBAL
  • CURRENCY
  • COMMODITIES

MARKET SNAPSHOT

  • INDIAN
  • GLOBAL
  • BSE SENSEX
    1. 1443442
    2. -965.56
    3. 1443 %
  • BSE SENSEX
    1. 1443442
    2. -1000.56
    3. 30000 %
  • BSE SENSEX
    1. 1443442
    2. -1000.56
    3. 30000 %
  • BSE SENSEX
    1. 1443442
    2. -1000.56
    3. 30000 %
  • BSE SENSEX
    1. 1443442
    2. -1000.56
    3. 30000 %
  • Last Update:09 Nov,2017
  • Show All
  • CURRENCY
  • COMMODITIES
  • YEN TO IND
    1. 1443442
    2. -965.56
    3. 1443 %
  • BSE SENSEX
    1. 1443442
    2. -1000.56
    3. 30000 %
  • BSE SENSEX
    1. 1443442
    2. -1000.56
    3. 30000 %
  • BSE SENSEX
    1. 1443442
    2. -1000.56
    3. 30000 %
  • BSE SENSEX
    1. 1443442
    2. -1000.56
    3. 30000 %
  • Last Update:09 Nov,2017
  • Show All
  • TOP GAINERS
  • TOP LOSERS
  • 52 WEEK HIGH
  • 52 WEEK LOW
 

Explore the basics of investing
in stock market and discover more!

Karvy
Financial
Academy

I want to learn


  • Equity
  • Mutual Funds
  • Commodities

What is ELSS

Tax saving is one important part of our financial career, managing tax efficiently is an art , if you can expertise that most of your financial issues could be resolved. When it comes to saving taxes most of us wait till the month of March because we continue our habits to push everything to the last day of submission like our school time assignment. Most of us end of in the paws of wrong products just because we want to get over with this. This specially happens to the investor who have just started working and may not have much knowledge about investment or tax saving.

So before taking any decision further, please review one of the most popular tax saving option i.e. tax saving mutual funds.

Mutual fund has become the top choice for the investors when it comes to fulfill their financial goals. It’s widely available, easy to invest in and can be picked as per one’s requirement. It’s one of the highly liquid investment options available today. You can start investing in Mutual Funds with just Rs. 500/- per month and wait for the magic of compounding to multiply your happiness.

1) What is ELSS?

Meaning of ELSS is Equity Linked Savings Scheme; it’s a category of mutual fund which helps in saving taxes. ELSS offers you dual advantage of capital appreciation as well as tax saving under section 80© of Income Tax Act. ELSS fund comes under equity category (open ended) which means more than 65% of the money is invested in equity. One can save taxes upto Rs. 1,50,000 under section 80 C. ELSS fund have two options of investment: Growth and Dividend (includes dividend reinvestment and dividend payout).

2) Features of ELSS funds:

Lowest lock in period: There are other tax saving products available in the market like PPF, NPS or FDs and so on, however all these products have a lock in period of more than 5 years. ELSS is one such product which gives you tax benefit with just a minimum lock in of 3 years.

Tax Saving: ELSS is a kind of mutual fund which provides tax benefit up to Rs. 1.5 lakh under section 80C Dividend and growth: one can choose to invest in either dividend or growth option depending upon the requirement of money. In growth option money is re invested and keep on growing till the time you redeem it, where as dividend is being paid out in dividend payout option. Dividend paid by ELSS funds is also taxable@ 11.65%.

3) Advantage of ELSS funds

  • Just 3 years of lock in.
  • The portfolio in which the will be invested is transparently available to all the investors.
  • Once the invested money completes 3 years of lock in period, you can with draw 100% of it.
  • ELSS provides you flexibility to invest via SIP or lump sum mode.
  • The returns regenerated by ELSS funds are comparatively better than in competitor products.
  • Fund manager is the expert who manages your money, even if you are new to investment but want to save tax, ELSS could be a good option.
  • There is no maximum limit for investment in ELSS even once you tax limit is exhausted , one can still invest in ELSS only thing is taxes can be saved up to 1.5 lakh only.

4) Disadvantages of ELSS Funds

  • ELSS is equity linked investment; there is no way one can avoid exposure towards equity in so it’s not suitable for conservative investors.
  • The money which you received after 3 years of lock in period will be taxable as per Long term capital gain tax.
  • The returns are not guaranteed, any investment in mutual fund doesn’t guarantee returns.
  • NRI from Canada and US can’t invest in mutual funds.

Know more about Share Market
Open Demat Account PARTNER WITH US
+
Karvy stock broking
Open Online Demat account
Karvy stock broking banner
X

Provided credentials already exist.

d