Groww Logo
search
Login
Register
elss

How are ELSS mutual funds when compared to other options?

Asked
Answer this Question
close

Your Answer

Attach Portfolio/Mutual Funds: (Optional, Max limit allowed : 3)
search
Post your Answer

Similar Questions

2 Approved Answers

Pijush Kanti Biswas

ELSS is a dedicated mutual fund scheme that allows investors to save tax. It also provides an opportunity for long term capital appreciation. An ELSS fund manager invests in a diversified portfolio, predominantly consisting of equity and equity related instruments that carry high-risk and have the potential to deliver high-returns.

ELSS mutual funds when compared to other options:

Some examples of popular ELSS for 2017:

  1. Reliance Tax Saver (ELSS) Fund 
  2. IDFC Tax Advantage (ELSS) Fund 
  3. Aditya Birla Sun Life Tax Relief 96

Happy Investing!






Groww

ELSS Mutual funds are special kind of mutual funds that are exempt from income tax exemption under section 80c. 


That means you claim exemption up to 1.5L from your taxable income if you invest that amount in ELSS funds. The profit from ELSS funds is also tax free. 


However, you need to know the following things about ELSS funds:


1. ELSS funds are equity funds (they invest in stocks of public listed stocks) and hence carry the risk of equity markets.


2. ELSS funds have lock-in of 3 years - that means you cannot sell you ELSS funds before 3 years. Your money is locked till then (however, this is much lower than 15 years lock in of PPF). Other mutual funds do not have lock-in period.


3. Minimum investment in ELSS funds is as low as Rs 500. However, this is true for some of other mutual funds also. But most of the mutual funds have higher minimum to start with.


4. ELSS returns are tax free (after 3 year lockin). Other mutual funds returns are tax free is sold after one year (when they are accounted under long term capital gains tax)


5. Maximum exemption under section 80c is Rs 1.5L per annum. Other mutual funds do not have this exemption. 


Here is list of ELSS funds available - Tax saving mutual funds


Check out the portfolio of ELSS mutual funds. 

Mutual fund investments are subject to market risks. Please read the scheme information and other related documents carefully before investing.
Past performance is not indicative of future returns. Please consider your specific investment requirements, risk tolerance, investment goal, time frame, risk and reward balance and the cost associated with the investment before choosing a fund, or designing a portfolio that suits your needs.
MOST POPULAR ON GROWW
MUTUAL FUNDS COMPANIES: ICICI PRUDENTIAL  | HDFC  | RELIANCE  | ADITYA BIRLA SUN LIFE  | SBI  | UTI  | FRANKLIN TEMPLETON  | KOTAK MAHINDRA  | IDFC  | DSP BLACKROCK  | AXIS  | TATA  | L&T  | SUNDARAM  | DHFL PRAMERICA  | LIC  | JM FINANCIAL  | BARODA PIONEER  | CANARA ROBECO  | HSBC  | IDBI  | INDIABULLS  | MOTILAL OSWAL  | BNP PARIBAS  | MIRAE ASSET  | PRINCIPAL  | BOI AXA  | UNION KBC  | TAURUS  | EDELWEISS  | ESSEL  | MAHINDRA  | QUANTUM  | PPFAS  | IIFL  | ESCORTS  |