A Guide to Invest in ELSS

Invest in ELSS

Invest in ELSS, as the name suggests, is an equity-based mutual fund. In case of mutual fund the company pools funds from various investors and an attempt is made to reward them with profit. This profit is divided among the investors as a regular payout or a lump sum amount at the end of the tenure. With ELSS tax benefits you are entitled to the same features, but an exemption to the tune of 1, 50,000 can be availed. These are instruments that can provide you with the highest returns but do carry a certain degree of risk. Once again it is going to depend upon the asset class you are going to deal. The Increasing Importance Of General Counsel In Governance

invest in ELSS

The right time to invest in ELSS?

Investment in ELSS can be done at any time of the year. But just before the tax returns season there is a spike in the purchase of such instruments. A general mindset among Indian masses is to reduce tax liability as far as possible. At this juncture, tax-saving instruments become a lot popular and investing at the end of the financial year would help you to save on taxes. But there is no chance to benefit from capital growth or to receive dividends during this time of the year. A comprehensive step by step guide to investing in mutual funds is as follows

Step 1- Research

As part of your first step, the key is to locate an ELSS fund that suits your requirements. There are thousands of ELSS funds in the market. So the key would be to locate an ELSS fund that satisfies your financial objective. In this regard, you can avail the services of professional companies.

Step 2 – figuring out the amount

The second aspect is how much amount you are planning to invest in ELSS funds. You need to be aware of the fact that they are tax-saving instruments. As per section 80 C an amount of 1, 50,000 can be saved in the form of taxes, but anything above this amount you is not entitled to any claims. So if an investor has already claimed the maximum deduction less than 80 C there is no point in opting for ELSS funds.

Step 3- Investing

In case of a standard process of investing it means numerous trips to a fund house or even through the bank by which you make the investment. Always opt for a professional company where paperwork is a bare minimum. They are going to ensure a fast track process of claims where things are secure in an online environment

Step 4 – Lump Sum or SIP

Once you have selected the scheme the question arises are you planning to invest in a lump sum or via systematic investment plan? If you choose the latter option you can avail the benefits of cost-saving per average. This would ensure making full use of the market fluctuations to an investor.

The last step is redemption as there is a period of 3 years to make use of tax benefits.

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Amit Gupta has been working as an experienced Wordpress developer and blogger at Latest Tech News Website, Amazing Viral Post and Amazing Viral News. He handles all projects with her team of expert developers. He is a passionate blogger and loves to share her knowledge with a large community of WordPress.

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