Benifits Of Equity Linked Savings Scheme- ELSS 2022

Benifits Of Equity Linked Savings Scheme- ELSS 2022

Benifits Of Equity Linked Savings Scheme- ELSS.Money is more secure for investors in mutual funds than in stock market.  It carries a lower risk of loss compared to the stock market.  Investors can get good returns by choosing a good mutual fund scheme.  Tax savings (MF) can also be obtained by investing in mutual funds. For this you have to invest in ELSS (Equity Linked Savings Scheme- ELSS).  According to the latest figures, cash flow of Rs 804.73 crore has been made through ELSS during January 2022.  This amount was Rs 567.04 crore during December, 2021.  Therefore, it can be said that the attraction of investors towards ELSS has increased.  You can get up to Rs 1.5 lakh tax deductible in ELSS.  In addition, there are many other benefits of ELSS, which we will look at.

Benifits Of Equity Linked Savings Scheme- ELSS

Benifits Of ELSS

 Tax Relief: 

Equity Linked Savings Scheme i.e. ELSS is an excellent option for tax savings.  By investing here, you can deduct up to Rs 1.50 lakh from taxable income.  This benefit can be availed under section 80C of the Income Tax Act.

 Lock-in time:

 If you invest under this scheme, your money will be locked-in for three years.  After three years you can withdraw the amount.  That means you can redeem the mutual fund.  One thing to keep in mind here is that if you have invested money through SIP, the lock-in time of the amount deducted each month will be different.

 Investing in Equity:

 One of the advantages of this scheme is that your money is invested in equity.  This means that you are likely to get a very good return.

 Invest with low amount:

 You can also invest in this scheme through Systematic Investment Plan (SIP).  That means you can invest a certain amount every month.

 No maturity date: 

There is no maturity date for this scheme.  However, your money needs to be locked-in for three years.  You can keep investing in this scheme for as long as you want.

 Fund Selection: 

In this scheme you can choose the fund.  You can choose the scheme as per your choice.  That means you can choose the scheme by doing your own research.

 Savings Habit:

 In this scheme, along with tax savings, you also get into the habit of saving.  So you can get a large amount together when you need it.

 Expect higher returns:

 As the money invested in ELSS stays locked-in for three years, there is usually hope for better returns.

 Tax savings on exit:

 In this scheme you get the benefit of tax savings when you exit after three years.  However, long term capital tax up to Rs 1 lakh remains tax free.  Earnings above that will be taxed at 10 per cent.

 Wealth Creation: 

For employed people, this scheme is a means of tax creation as well as wealth creation.  Because you can save a lot by investing a little.

(Disclaimer: The views/suggestions/advices expressed here in this article is solely by investment experts. suggests its readers to consult with their investment advisers before making any financial decision.)

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