Equity Linked Savings Scheme is a diversified equity fund that invests its maximum corpus in equity. ELSS is a very popular scheme under Article 80C of Income Tax which also includes income tax savings and increases in invested capital. There is a lock-in period of three years in this scheme. It is very important to understand this plan before investing.
ELSS is a mutual fund mutual fund that can invest in equities as well as tax. ELSS is a diversified equity mutual fund that invests in the majority of its corpus fund equity. Diversified means that this fund invests in shares of companies of different industries and sizes. So that the diversities in the fund remain. It is necessary to understand here that there will be more variety of winning in the investment, the less the risk. Since it is an equity fund, returns from ELSS ELSS Fund reflect returns from the equity market. Better fund managers can give you better returns than the market.
Tax savings with investment in ELSS Mutual Fund
Dividend and Growth Like all other Equity Mutual Fund Equity Mutual Fund schemes, ELSS also offers dividend and growth options. Investors get a lump sum at the end of 3 years in the Growth option. On the other hand, in the option of dividend, investors get regular dividend income, whenever the dividend is declared by the fund, even during the lock-in period.
Lock in period:- is a lock-in period of three years on the investment under this scheme ie when you invest in this scheme, you can not redeem your investment for three years. Since it is beneficial to invest only in long-term for a longer period of time, therefore, in three years, you are likely to get a good return. You can also invest in ELSS through SIP, which makes investing easier and reducing the risk of investment.
Tax exemptions can be claimed as a deduction up to 1 lakh rupees of their ELSS investment from their gross total income in a financial year under Section 80C of the Income Tax Act. Returns from ELSS scheme are completely tax-free Any other investment plans available for tax rebates such as bank deposits, NSC or PPF, ELSS is available with the lowest lock-in period.
ELSS is a great Mutual Fund investment scheme in the schemes available for investment, but like investing in the stock market share market, there is a risk in the same way as the stock is in the market. It is expected that ELSS in Hindi would have liked you and you have helped to know what ELSS is in Hindi.
Example:- Canara Robeco Equity Tax Saver Fund