The Fundamentals of Investing in ELSS
by Ravi Kumar Blogger LiveThere are methods and norms for you to know regarding how to invest in ELSS. This is the tax
savings mutual fund option to allow people make investments in the kind of
funds the amount of which is Rs. 1.5 lakh and this will help you earn a
suitable tax break specifically under the section 80C. In case of ELSS funding
you earn the lowest lock-in profit amount among all the investment options at
length. This is definitely for tenure of complete three years. At the time of
investing in ELSS fund you are sure to get the highest return in the impending
days. The minimum amount for this can be INR 500.
However, there are reasons to think why ELSS is the notable saving
option among the rest. The deposition of INR 500 to an amount of INR 1.5 lakh
is according to the amount of tax deduction based on the norms of the income
tax act of section 80C. There is the three years of lock-in investment time.
This will help you withdraw the complete amount after the successful completion
of three years. However, you can only get the returns after the complete
maturity of the fund and this is not at all taxable.
The only reason for this is that after one year of lock-in period
the total investment will become absolutely tax free. In case of ELSS the
lock-in period is of three years in the least. The funds are sure to come with
the dividend option and under the same the investor has the ability to deliver
the dividend even during the lock-in period. This is the sort of funding scheme
with the huge growth option. Comparatively ELSS has the shortest lock-in
period. This makes it the best investment option to handle even in the hardest
times.
Above all things, you need to know how to invest in ELSS. After
things are clear, you can start putting in money then and there. To invest in
ELSS you have to be KYC Compliant. This will make you eligible to invest in ELSS
like any option of mutual fund. For the same, you need to fill in the form and
you have to deposit the money either through check or by means of online
transaction. You can make the investment in both the ways. It can be one time
investment and when you don’t have enough money in hand you can go for SIP or
systematic investment plans.
SIP is a flexible option in case of ELSS and with this you can invest an amount of NIR 500 every month. The advantage of making an investment with SIP is that it helps in reducing the risk and the volatility resulting from the upheaval in case of the real time money market. There is the only disadvantage associated with ELSS and that is the risk factor is higher when compared to NSC or PPF. Other than this, ELSS is the sure funding option you can choose to invest money at the right time. Learn more at Gualq Mutual Fund Blog
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Created on Jun 10th 2019 04:30. Viewed 390 times.