The ELSS and its benefits

8/26/2019 RAWAT 0 Comments

Investing in various markets can be much helpful in the long run. One can find various avenues which can help him fetch good returns but each of them has some or other risks attached, and usually, the risks are higher than the expected return. Keeping this point in mind one can trust on the mutual funds where the risk is comparatively low. One can find several options in mutual funds also where he can invest. One of the most famous option is ELSS which is also known as a tool that can help the investor save income tax on his taxable income.

For everyone, the earnings from any source matter a lot. However, with the increase in earning one also has to care for the tax liability which he is supposed to pay to the government as per his tax bracket. The Equity-linked saving scheme, also popular as ELSS, helps one at this stage. With the help of investment in ELSS, one can save tax up to 150000 under section 80C as the taxable income reduces to that extent. However, there is also one condition that the investor cannot withdraw the amount invested for three years as it has a lock-in period of the said period for this option. Now one may be eager to know how to invest in ELSS. The process of investing in this option is simple and easy.

The investment options:

In the ELSS also one can have various options when it comes to investing in the fund of ELSS. There are midcaps, small-caps and large-caps funds where the fund is invested by the AMC, and one can decide accordingly to invest in specific AMC as well as fund. As far as the question how to invest in ELSS is concerned in terms of process, it is not at all a tough task as the concerned companies have made grand efforts to offer a platform which can help every investor to have ease of investing in the ELSS also. Many of the AMCs offer facilities on apps and sites from where one can easily invest the amount online. There are also offline options available where one can invest the amount with the help of an agent or a company. While applying for the ELSS one needs to offer several documents such as PAN card, Identity proof, cancelled cheque, and address proof.

Why is this a beneficial option?

One can have ample benefits of investing in the ELSS. It helps one to fetch better returns on investment as one has to keep the amount for a minimum of three years. The investment also comes with the benefit of saving amount on tax and the most important part is one can invest the amount in the form of instalment also. Another important benefit is one can keep the amount for the long term and keep on getting more and more benefits also. Hence for one who falls in the income tax bracket, it is a good option to save tax and invest the amount in the safest option.