How to choose the Best ELSS Fund
It’s that time of the year when every salaried class individual starts looking for tax saving alternatives. Mutual Fund ELSS scheme is one of these options and the best one available at that.
What is an ELSS?
ELSS or equity linked savings scheme is like any other equity mutual fund scheme, with a crucial difference of offering tax benefits. An ELSS gives you tax deduction benefit of up to ₹1.5 lakh under Section 80C.
Why is ELSS the best alternative?
Simply put, it gives you the best chance to earn higher returns than any other tax saving alternative, as it is the only pure equity investment vehicle that offers tax benefits. See the table below for comparison with other tax saving instruments.
What is the Lock in Period?
It comes with a three year lock in period. While some call this as a hindrance others tout it as an advantage, given that the other alternatives have a higher locked in period.
Continue reading here…
