At some point in your employment, you’ll notice the Tax-man gobbling up your income. At precisely this moment, all you can think of is saving your hard-earned money. What if we said it is possible to save tax in the process of building your wealth? This is exactly what ELSS does. ELSS or Equity Linked Saving Scheme is an investment option that allows you to make returns simultaneously by saving taxes.
The investments in ELSS up to Rs. 1.5 lakhs are tax deductible under Section 80C of the Income Tax Act. ELSS investments have a short lock-in period of 3 years after which these funds can be redeemed. Considering other tax-saving investment options like PPF, NPS, and FDs, the 3-year Lock-In period of ELSS fares well in comparison where the lock-in periods are 5 years and above. This makes ELSS a very suitable investment option for people looking to save tax.
Similar to other mutual funds, ELSS investments can also be done as lumpsum or SIPs based on your convenience. Choosing the best investment option is a game changer in the financial growth of every individual. Therefore, whenever you are stuck with lots of options, always talk to experienced investment coaches to get your doubts cleared.
