Features of ELSS Mutual Funds

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ELSS Mutual Funds, or Equity Linked Savings Scheme Mutual Funds, are tax-saving mutual funds in India.

1. ELSS investments don't come with a fixed tenure requirement.

2. ELSS Funds are the best-performing investment platform in the tax-saving sector, with long-term returns of between 10 to 12 per cent. But similar to any equity investment, there is some risk associated with ELSS as well.

3. You gain from both tax savings and capital appreciation on ELSS investments.

4. Investors have the flexibility to choose between receiving regular income through dividend payouts or opting for the growth option that emphasizes capital appreciation.

5. Among all tax-saving options, they have the shortest mandatory lock-in period of three years.

6. Fund managers diversify investments across various stocks and sectors, reducing the risk associated with a concentrated portfolio.

7. Investors can choose to invest through SIPs, allowing them to contribute small amounts at regular intervals, promoting disciplined and systematic investing.

 

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