Equity Linked Savings Schemes (ELSS) are tax saving mutual funds. ELSS funds provide dual benefits for its investors of capital appreciation and tax saving. ELSS mutual funds come with a lock in period of three years. Investors are allowed to claim tax deductions under Section 80C of the Income Tax Act, 1961 up to Rs. 1.5 lakh in a financial year.
Shortest
lock-in:
ELSS has the shortest lock-in period of three years. Tax-saving fixed
deposits have a five-year lock-in, while PPF has a 15-year maturity.
All in all, ELSS offers more liquidity in the medium term.
Potentially higher
returns:
Unlike ELSS where return is market linked, other 80C investments like
PPF or FDs are fixed income products. ELSS has the potential to
generate significantly higher wealth in a medium to long-term
investment horizon.
Better post-tax
returns:
Long Term Capital Gains from ELSS are tax free up to limit of Rs.1
lac. Gains over 1 lac attracts a tax rate of just 10%. Lower tax
rates, coupled with higher returns ensure the best post tax returns.
Regular investing is
hassle-free and convenient:
It is easy to invest in ELSS funds through a monthly SIP.
To invest in an ELSS, an individual must be KYC compliant. ELSS works very well for Salaried Individuals as apart from the upside of higher returns, they can also avail tax benefits under Section 80C of the Income Tax Act. That said, ELSS is also suitable for those who are open to short term risk and can stay invested for a long time for better returns.
ELSS Funds are a class of mutual funds that are eligible for tax deductions under the provisions of Section 80C of the Income Tax Act, 1961.
ELSS Mutual Funds have a lock-in period of 3 years.
You can choose to invest through SIP (enjoy the additional benefit of Rupee Cost Averaging) or through a Lump-sum investment. You can choose either the Online or the Offline mode of investment.
Disclaimer - Mutual Fund investments are subject to market risks, read all scheme related documents carefully.
Escalation Level | Contact detail | Email id | Timelines for resolution |
---|---|---|---|
Level 1 | 022-61778501-04/07, 022-27785304/12 -14 | customercare.services@stockholding.com | Within 30 days from grievance date on best effort basis. |
Level 2 | MF_Product_Team@stockholding.com |
It is important to understand the Mutual Fund type and their features. Mutual Fund types can be classified based on the following characteristics.
Various type of Mutual Funds exist to cater to different needs of different people. Largely, they are of three types.
Examples would be
For e.g.Technology funds that invest only in technology companies
Systematic Investment Plan (SIP) helps you build wealth, step - by - step, over a period of time. SIP can be started for as low as Rs. 500 per month and gives you the benefit of the power of compounding and rupee-cost averaging. SIP payments can be automated by providing an online mandate.
Lump-sum allows you to invest in a Mutual Fund by paying a bulk amount. There is no compulsion to buy units at regular intervals or for any fixed amount if you wish to reinvest in the same fund.
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Click hereEnjoy the ease of seamless investment with e-MF through StockHolding. It allows you to invest in Mutual Funds 24 x 7 on a click using a Common Account Number (CAN). This unique number maps all your Mutual Fund folios from various fund houses, consolidating all your investments at one place. Furthermore, it allows transactions in multiple schemes across fund houses by making a single consolidated payment and eliminating the need to fill-new account opening forms for every mutual fund.
Mutual Funds are easy to understand and invest in.
Can be bought by filling an online form or visiting any of our branches
Mutual Funds have broad market exposure. Hence risk can be minimised
Since a team of expert fund managers work to manage your portfolio, you can breathe easy
Disclaimer - Mutual Fund investments are subject to market risks, read all scheme related documents carefully.