Equity Linked Saving Scheme (ELSS)

ELSS plays a significant role in Tax Planning, which is a significant aspect of Financial Planning. ELSS appreciates your money & ensures tax efficiency. You can save up to 46800 after investing Rupees 1.5 Lakhs in ELSS if you come in the 30 Lakh tax bracket.

Equity Linked Saving Scheme or ELSS is an equity-based Mutual Fund where you hand over your capital to an AMC (Asset Management Company) who on your behalf will invest your money, mainly in Stocks. ELSS come with a mandatory 3 Year lock-in period. AMC’s Fund Manager takes care of your hard earned money and ensures that you receive a high ROI.

What are the benefits of investing in ELSS Mutual Funds?

ELSS offers its investors multiple Tax benefits, some of which are listed below:- a)   ELSS offers the lowest lock-in period of just 3 Years. b)   ELSS produces far more superior returns than traditional investments. c)   ELSS keeps the capital insulated from inflation. d)   ELSS does not have a maturity date so you can remain invested as long as you wish. e)   ELSS investors enjoy the power of Compounding. f)   ELSS Fund is managed by professionals under SEBI guidelines, therefore, it is quite secure. g)   ELSS fund invests across sectors and stocks and therefore diversifies your capital. h)   ELSS is the investor’s gateway to Equity. They can invest in the Stocks indirectly via ELSS. i)   ELSS helps you save Rupees 1.5 Lakhs under Section 80 C of the Income Tax Act.

Should you invest in ELSS funds or Tax Saving FD?

Investment choice should solely depend on risk tolerance, age, and investment objective. If you are young with a lot of disposable income in hand then ELSS is a perfect choice. Conversely, if you are retired personnel with very low-risk appetite then investing in tax saving FD will be a preferable option which offers fixed and guaranteed returns.

ELSS Investment Plans from Swaraj Finpro Private Limited

ELSS is no doubt one of the best investment products available in the market which will help you reach your financial goals. However, picking up one ELSS fund that would suit you would be a tedious process. A layman also stands the risk of picking up the wrong investment product that may cost him dearly.

But, investors need not worry because Swaraj Finpro Private Limited is available at their doorsteps for rescue. Swaraj team of experts who have years of experience will help you with your investment needs. If you are an aggressive investor and your objective is high ROI along with Tax Saving under section 80 C then you should just keep your KYC documents and Cheque ready, and leave the rest to Swaraj Finpro Private Limited!