Articles

An Equity-Linked Savings Scheme (ELSS) is a tax saving mutual fund meant to encourage long-term equity investments. Under Section 80C of the Income Tax Act, the amount you invest in ELSS is deducted from your taxable income up to a limit of Rs 1.5 lakh in a financial year, resulting in significant tax savings.

ELSS is a popular choice among investors because of its tax benefit and potentially high returns, and also because it has the shortest lock-in period of all tax-saving instruments under Section 80C. However, most fund managers will advise you stay invested for longer than that to maximise returns.

A mutual fund pools in money from various investors and invests it in various types of underlying securities. They prove to be a great investment tool for growing ones’ wealth. Irrespective of your risk appetite and investment horizon, there is a mutual fund for everyone. However, investing in mutual funds for the wrong reasons can result in a bad investment.

Mutual funds have become an increasingly popular investment option, even among those who are unfamiliar with the stock market. This is because not only do they offer a higher return than many fixed income or other financial instruments, but you can also pick and choose the kind of returns you want vis a vis your risk appetite, investment time horizon and financial imperatives. And if you are new to the market, there’s always your friendly financial advisor who can help you understand debt, equity, balanced funds and other such stock market jargon.

A Systematic Investment Plan or SIP allows you to invest a fixed sum at regular intervals in selected mutual funds or shares. This allows you to buy smaller amounts at regular intervals, building fiscal discipline and saving you from the shock of a last minute lump sum payment

Passive mutual funds are exchange traded funds and funds that invest in index, thereby ensuring stable returns without much risk over the long term. Here’s all you need to know about these funds

Tax saving mutual funds, also known as Equity Linked Saving Scheme or ELSS, offer the dual benefits of higher returns and tax saving through deductions up to Rs 1.5 lakh under section 80C of the Income Tax Act.