why should you start invest in ELSS funds?

1. why should you start invest in ELSS funds? ELSS stands for Equity Linked Savings Scheme. The equity-linked saving scheme (ELSS) is actually a form of diversified equity fund which offers tax exemption under Section 80C of the Income Tax Act and provides the twin benefit of capital appreciation and tax benefits. Being mutual funds, they are offered by fund houses and are handled by experienced fund managers. You get to invest in a professionally managed tax saving investment option when you invest in an ELSS scheme. Capital appreciation: One can create wealth by linking their ELSS fund to their long-term financial goal. By choosing growth option, one can gain from compounding and create the desired corpus. Shortest duration: Lockin period of ELSS is 3 years which is shortest in comparison to any other tax saving investment. This lockin is the only difference between diversified equity mutual funds & ELSS. High Growth: Equity funds can be volatile in the short run, but have been known to beat inflation and create wealth over the long run. If you are looking at investing some money that you won’t need future, and are willing to ride the ups and downs of the market, you may find ELSS an ideal tax saving option. Transparency is high level: If you invest in an ELSS fund, you can track the changes in your portfolio daily. Having this information can help you make educated decisions regarding changes that you can make to your existing portfolio in order to increase your ROI. Every ELSS scheme offers this option, not just the best ELSS scheme. Any other tax saving investment option is not available for high-level transparency. Categorized funds availability: As per one's risk-taking capacity, AMC’s design their scheme on the basis of large-cap, mid-cap, and small-cap and accordingly their risk and returns varies. Therefore, the schemes provide you flexibility in taking the risk while investing. However, you cannot ignore the element of risk as all the schemes are equity-based and market linked. Availability of SIP option: If you cannot invest in one go, that is through lump- sum mode, then you can go for monthly investment mode through systematic investment plan (SIP). This process can reduce your burden of investing a huge

2. amount in a month and also, it can benefit you through rupee cost averaging over a period of time. Minimum amount to be invested is Rs 5,000 a year. Return possibility is high: Schemes under ELSS category have given remarkably higher returns in past when compared to any other tax saving instrument present in the financial market. Some of them are mentioned below. However, returns are market-linked and they are not guaranteed. Nevertheless, you should invest in these fund over a period of time for at least 5 to 7 years and gain a high compounded return on your investment. But before investing, you should take help from a certified financial planner or consult your adviser for the same. Purchasing ELSS is just a very smart method to develop your cash, ELSS brings to the table an extremely fine combination of growth, tax savings, and stability. But the key here is getting the right kind of advice and guidance. With the help of right direction, you will be able to make out the top performing ELSS funds and will be able to categorize your investments based on the same. More On: http://www.stockmaster.in/howtoinvest/