Best answer: How much should I invest in ELSS?

How much should I invest in ELSS to save tax?

By investing Rs 1.5 lakh in a financial year in an ELSS, an individual taxpayer in the highest tax bracket can save tax of Rs 46,800 (inclusive of cess at 4%). To invest in an ELSS, an individual must be KYC compliant.

Which ELSS is best to invest in 2020?

  • Axis Long Term Equity Fund. Invests in quality businesses with a long term approach. …
  • Mirae Asset Tax Saver Fund. …
  • Invesco India Tax Plan. …
  • Aditya Birla Sun Life Tax Relief 96. …
  • DSP Tax Saver. …
  • Kotak Tax Saver. …
  • ICICI Prudential Long Term Equity Fund. …
  • Motilal Oswal Long Term Equity.

Is it good to invest in ELSS now?

While ELSS has the shortest lock-in period of 3 years among all other tax saving options, in essence it is still an equity fund.

Here is the list of the Best ELSS funds in India for 2020-2021:

Best ELSS Funds Axis Long Term Equity Fund
1 Year 3.04%
3 Years 7.94%
5 Years 10.83%
Since Inception 16.07%
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Is it best time to invest in ELSS?

ELSS fund has the shortest lock-in period among all tax-saving investment options. The units are free for redemption after 3 years. This leads some investors to think that the time horizon for an ELSS fund is just 3 years, but that’s not true, and one shouldn’t invest in ELSS if the investment horizon is only 3 years.

Is ELSS better than PPF?

PPF is suited for individuals who are absolutely risk-averse and can afford a 15-year lock-in period. Whereas those investors who are willing to take a moderate risk to earn higher returns can opt for ELSS. The best way to reduce risk in ELSS to its minimum is by staying invested for the long term.

Is ELSS taxable after 3 years?

The Long-Term Capital Gains on ELSS are tax-exempt up to Rs 1 lakh, and dividend received is tax-free in the hands of investors. You can continue to invest in this scheme even after the completion of the lock-in period of three years.

Is Axis Bluechip fund ELSS?

Axis Long Term Equity Fund is an open ended equity linked saving scheme with a statutory lock in of 3 years and tax benefit. … *As per the present tax laws, eligible investors (individual/HUF) are entitled to deduction from their gross income of the amount invested in Equity Linked Saving Scheme (ELSS) up to Rs.

Is ELSS safe?

ELSS funds are essentially diversified equity funds and carry similar risk as equity funds as they both invest in the equity markets. But in addition to the implied equity risk component, ELSS funds have a three year lock-in period after investment during which the money from the fund cannot be taken out.

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Is SIP tax free?

If you are investing through SIPs in equity and balanced mutual fund schemes, then all the gains made after one year will be treated as long term capital gains and that will be completely tax free. … However, if your SIPs were in debts funds or hybrid funds (MIPs) then the profits will be tax @20% after indexation.

Why is ELSS bad?

Poor performance: This may be one of the major reasons why people are shying away from ELSS funds. … The average three-year SIP returns of ELSS funds for 2017 and 2018 were around 14%, and only 6% in 2019. Many funds yielded negative three-year SIP returns in 2019 and 2020.

Can I invest in ELSS for 20 years?

If you stay invested in an ELSS fund for 10-20 years you can easily expect a compounded return of over 10%. … Even if you reduce your long-term return expectations to 10% from 12%, then also you can accumulate a corpus of Rs 96 lakh in 20 years by investing Rs 12,500 every month.

Can ELSS be stopped?

Is it possible to do so? Yes, it is possible to stop your SIP investments in mutual funds, including your equity linked saving schemes (ELSSs). If you have gone through a mutual fund advisor, you can ask him for help. You just need to fill up the form – the procedure is the same if you have invested offline.

Which is better sip or lumpsum in ELSS?

Choosing ELSS will help you maximize tax benefits under Section 80C. Lumpsum investments will be better suited if you are investing at the end of a financial year, or if you have a higher risk appetite. On the other hand, SIPs will be better suited if you want to avert risks and have a steady source of income.

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What is Blue Chip Fund?

Blue chip funds are equity mutual funds that invest in stocks of companies with large market capitalisation. These are well-established companies with a track record of performance over some time. … Blue Chip is commonly used as a synonym for large cap funds.

Is it right time to invest in gold?

“It is a good time for investors to hold gold for medium to long term,” he added. … This could help investors gain as gold price is expected to appreciate over the next few months. However, most analysts have advised investors to go for Gold ETFs as they are price-efficient and offer safety.

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