A complete guide for investment in ELSS
by Ravi Kumar Blogger LiveInvestment in
various segments can help one get a sound portfolio over a period which can
make him achieve all of his financial goals easily. Those who have a huge
income and fall in the tax bracket always think of the instruments that can
help them save on the front of tax. People prefer to invest in land, gold,
stocks, mutual funds and own business which can help them to earn better return
at the decided period. However, all these
instruments or segments have different pros and cons which one must check before
investing.
In the case of gold, one can fetch a good return after a few years of purchase and also have sound
liquidity, but it is not a good tool for the
short run. In the long term, it can help, but on the other hand, the risk factors of stealing and damage to the metal are also
there which one must not ignore. It cannot help to save tax also.
The ELSS:
The ELSS is an option where one can invest money in the mutual
fund and earn a good return. It also
helps one to save tax as the money is blocked
for a certain period. The return in a mutual fund for a considerable period is good
in majority cases, and hence one can also
expect a good return on the invested
amount after a certain period. However,
it is a close-ended option, and hence once the form is filled and money is invested
one cannot redeem it till the provided period, and
that is why the tax benefit on the same is
offered to the investor.
It is known as an equity-linked saving scheme where the amount is invested in units, and one can track the price of the same on the site of the
concerned company. The question of how to invest in ELSS is quite obvious
among those who love to fetch good return with saving on tax.
The option:
Investing in a mutual fund is much simple. One needs to check
the options first and decide to go for a particular option. Almost
every MF company has ELSS on its products list, and
therefore one needs to choose it prudently. The rate of return is the most
important tool to measure the growth of the money invested. Other than the rate
of return there are also options such as growth and dividend which must be checked.
Important points:
There are some important points that need to be checked before investing in ELSS. Though every company discloses the ELSS after approval from the authorities only, one needs to verify the same on the official site of the company with its registration number. Comparison among various ELSS options from different companies can help one choose the right option easily. One can also check the dividend as well as growth option of each of the players in the market with their AUM which can help one have a clear picture.
Usually, the period for withdrawal
of the invested amount is 3 to 5 years that one needs to check before
investing.
Learn more about mutual funds at Gulaq Mutual Fund Blog
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Created on Jun 7th 2019 07:51. Viewed 407 times.