Equity Linked Saving Schemes (ELSS) are a popular investment option for individuals looking to save on income tax while also generating wealth. These schemes are essentially market-linked saving schemes that come with a lock-in period of 3 years. One of the best parts about ELSS is that it offers dual benefits – tax savings and potential for wealth generation.<\/p>\n
ELSS funds are mutual funds that invest primarily in equity and equity-related instruments. They have delivered impressive returns over the years, making them an attractive investment avenue for both beginners and seasoned investors. Let’s take a closer look at some of the best performing ELSS funds:<\/p>\n
\u00a0 \u00a0 \u00a0 \u00a0 \u00a0 \u00a0Mutual Fund\u00a0 \u00a0 \u00a0 \u00a0 \u00a0 \u00a0 \u00a0 \u00a0 \u00a0 \u00a0 \u00a0 \u00a0 \u00a0 \u00a0 \u00a0 \u00a0 \u00a0 \u00a0 \u00a0 \u00a0 \u00a0 \u00a0 \u00a0 \u00a0 \u00a0 \u00a0 \u00a0 \u00a0 \u00a0 \u00a0 \u00a0 \u00a0 \u00a0 \u00a0 \u00a0 \u00a0 \u00a0 \u00a0 \u00a0 \u00a0 \u00a0 \u00a0 \u00a0 \u00a03 Years CAGR%\u00a0 \u00a0 \u00a0 \u00a0 \u00a0 \u00a0 \u00a0 \u00a05 Year CAGR%<\/strong><\/p>\n These funds have consistently outperformed the market and have provided investors with substantial returns over the years.<\/p>\n One of the key advantages of investing in ELSS is the tax benefit it offers. ELSS investments are eligible for tax deductions under Section 80C of the Income Tax Act, up to a maximum limit of Rs. 1.5 lakh. This means that you can save a significant amount on your income tax outgo by investing in ELSS.<\/p>\n Additionally, ELSS funds have a shorter lock-in period compared to other tax-saving investment options like Public Provident Fund (PPF) and National Savings Certificate (NSC), which have lock-in periods of 15 and 5 years respectively. The 3-year lock-in period of ELSS allows investors to have liquidity and flexibility in their investments.<\/p>\n Another advantage of ELSS is the potential for wealth generation. Since ELSS funds primarily invest in equity, they have the potential to deliver higher returns compared to traditional tax-saving instruments. Over the long term, equity investments have historically outperformed other asset classes, making ELSS a lucrative investment option for wealth creation.<\/p>\n However, it’s important to note that ELSS funds are subject to market risks. The performance of these funds is linked to the performance of the stock market. Therefore, it’s advisable to invest in ELSS with a long-term perspective and diversify your investments across different funds to mitigate risks.<\/p>\n In conclusion, Equity Linked Saving Schemes (ELSS) offer a unique combination of tax savings and wealth generation. With a lock-in period of 3 years, ELSS funds provide investors with the opportunity to save on income tax while also potentially earning higher returns. It’s important to choose the right ELSS funds based on their past performance and align them with your investment goals and risk appetite. So, why wait? Start investing in ELSS today and unlock the potential for tax savings and wealth creation!<\/p>\n Still not sure about the first step? Contact us @9482590290 on whatsapp, we will help you in fund selection as per your goals, needs and risk appetite and MF selection.<\/p>\n","protected":false},"excerpt":{"rendered":" Unlocking the Potential: How Equity Linked Saving Schemes Can Save Taxes and Generate Wealth Equity Linked Saving Schemes (ELSS) are a popular investment option for individuals looking to save on income tax while also generating wealth. These schemes are essentially market-linked saving schemes that come with a lock-in period of 3 years. One of the …<\/p>\n\n