Deepak Ramaraju, Senior Fund Manager at Shriram AMC discusses global and domestic market conditions, predicts a market rebound post-elections, and recommends ELSS for tax-saving and long-term capital appreciation
Tax-saving mutual funds, or ELSS, provide investors with tax benefits under Section 80C of the Income Tax Act, of 1961. The lock-in period inculcates a good habit among investors to thrive for long-term investing while putting their money in an equity-related instrument.
Axis ELSS Tax Saver Fund, the largest scheme in the ELSS category based on assets managed, failed to beat its benchmark in three and five year horizons. The scheme manages assets of Rs 33,526. 42 crore.
ELSS is a great way to save tax while gaining exposure to the equity market. It is recommended for those with a tax saving mindset and a tilted asset allocation towards debt. ELSS schemes are mutual fund schemes that offer exposure to different types of underlying markets. They can be largecap, midcap, or flexicap. Some recommended ELSS funds include Quant ELSS Tax Saver Scheme, Bank of India ELSS Scheme, DSP ELSS Tax Saver Scheme, Bandhan ELSS Scheme, and Kotak ELSS Tax Saver Scheme. EL
Updated Feb 27, 2021 | 08:09 IST
Look at the portfolios of the ELSS schemes and ensure that the ones you have selected have varied allocation to different sectors and stocks Looking to invest in ELSS to save tax? Know things to keep in mind before choosing an ELSS
With the tax-saving season for this financial year coming to a close, several taxpayers zero-in on ELSSs due to its shorter lock-in and potential for high returns compared to most other tax savers which either have a longer tenure or are debt-oriented, and low returns over longer tenures.
Since ELSS is often the first equity fund category that young investors invest in, they should choose their fund carefully, so that their initial experience in equity investing is good and they get hooked to this asset class for the long term. ELSS is eligible for tax deduction under Section 80C up to Rs 1.5 lakh.