In this era of financial uncertainty, there are many options offered by the companies and experts with the help of which one can have a better portfolio created. Among the leading options of wealth creation, one can find the place of a mutual fund on top. There are ample options in mutual funds also which can help one get a better rate of return on the amount invested. For the common man, it is necessary to know the world of mutual fund in little depth as there are many funds with different features that can help one get a better return on low investment also.
The ELSS:
The equity-linked
saving scheme is known as ELSS in short, and it is a known tool of saving tax
on the taxable income. For an investor, the question of how to invest in ELSS can be a tricky one, but indeed the process
of investing in ELSS is much simple. In the regular mutual funds, the amount
invested does not attract the exemption of the tax, and that is the point where
ELSS differs from other mutual funds. The amount in ELSS can be invested in one
go or instalments as per the convenience of the investor.
The modes of
investment:
Due to the
digitization, one can go for investing in ELSS by an offline option or an
online one. Usually, the process and documents in both of these options are
same only, one can find the online option easier one if he is adapted to the
online form filling and transfer of funds. In the offline mode, one has to fill
the form manually and provide copies of the documents with the application
form. In the online mode, one needs to fill the form online and offer all the
soft copies of the documents which are required for the application. For modern
users, all the AMCs offer online mode as well as the facility of applying with
the help of some of the apps also. Hence investing is made hassle-free and
rewarding.
The advantages:
After
understanding how to invest in ELSS,
one needs to know what the benefits of investing amount in this mutual fund are.
The foremost important advantage is one can save tax on his income up to
150000. The lock-in period in ELSS is only three years which means one can get
the invested amount with a handsome return after three years which is
considered as a short period. One can also have another benefit in the form of
investment as in case of tax payment one has to pay the tax in one go while in
case of ELSS which helps to save tax one can also go for payment in monthly
mode. The return on the fund invested in ELSS is also good which one can check
from past record of the concerned AMC. Hence there are many advantages one can
have if one goes for ELSS in comparison to any other option in the mutual fund
market.
