No one knows how life will go. Therefore, most people feel safe in investing not just for their family but also more has to come for the future. Thinking for the family’s future is your responsibility, but making all the things correct so they never get bad results is also crucial. Well, with the numbers of investment options, ELSS is the best performing mutual fund scheme to receive higher ROI and with tax deduction benefits.
If you don’t know best performing ELSS mutual fund scheme, then read this article. In this, we will discuss the ELSS and its benefits.
What is ELSS?
ELSS stands for equity linked saving scheme. This investment mainly used to deduct tax from income. This investment re best to get higher ROI. But you will need to make sure you have taken the advice from the financial expert so it could not take your peace of mind. The other thing you need to perform is to make sure you have planned everything perfectly without sarcasm.
Steps to choose the best performing ELSS Mutual Fund scheme
- Choose the scheme which suits your budget
- Choose from the schemes such as regular mutual fund or tax saving mutual fund.
- Open your bank account
- Choose your arbitrator
- Take help of Fund Advisor
- Select online distributor
Features of ELSS Mutual Funds schemes
ELSS is one of the best equity schemes which is a great option in the market. ELSS is not only good for income tax deduction but also its short period of investment offers high ROI. It acts as a great tax deduction system where anyone can start investing and earn great profits. Despite all these, there are several features you will need to look for.
- ELSS is inked with a tax deduction system that opens up for all and offers tax benefit Rs. 1.5 lakhs under 80C income tax act.
- ELSS comes under two different groups of investment dividend and growth.
- In the growth period, the lump-sum amount will be paid to the investor after completion of 3 years.
- The divine, the investor will receive the amount of payment in installments.
- The maximum limit of investment is up to 1.5 lakhs.
- Investors can opt for SIP scheme
- The ROI depends on the total investment made in ELSS.
Pros:
- It will offer tax-free gains
- It has high liquidity at low price
- It comes in the 3-year lock system
- Post can withdraw the amount when he wants
- It provides you income tax benefits
- Provides high returns
Cons:
- Need to submit right documents
- Risk is higher
- ROI depends on market condition
- NRI is not allowed to use ELSS
- ELSS is one of the best tax investment plans but includes higher risk instead of PFF and EPF plans.
This is the complete guide on ELSS scheme, learn and follow the steps while investing.
