I am looking to invest in elss funds - SIP of Rs 10K per month. Please suggest.Asked
Mutual funds can be tax-efficient investment avenues that can help reduce your tax burden and at the same time increase your wealth. But not all investments into mutual funds are tax-free under Indian Income Tax Act.
Only ELSS Mutual Funds offer tax benefits under section 80C of the Income Tax Act. As per this section, one can avail tax exemptions up to INR 1,50,000 by investing in ELSS funds.
Some examples of popular ELSS for 2017:
These ELSS has been rated 5 and 4 star by Groww.
Tax saving mutual funds or ELSS are funds where the investments made are exempted from tax under section 80C (upto 1.5 lac). These funds have a lock-in of 3 years. The best way to invest in them is through SIP (monthly investments).
Here are the best performing tax saving mutual funds for 2017 -
1. Reliance Tax saver
2. DSP Tax saver
3. Birla Tax relief 96
4. Kotak Tax saver
Check the attached portfolio of these funds. You can easily diversify your investment by investing in the portfolio.
The portfolio has give ~21% year-on-year returns in last 5 years.