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What is ELSS Mutual Fund?

ELSS mutual funds are a popular choice among investors in India for both wealth creation and tax planning purposes. However, it's essential to consider your financial goals, risk tolerance, and investment horizon before investing in any mutual fund, including ELSS funds. Additionally, tax laws and regulations may change, so it's advisable to consult a financial advisor or tax expert for the most up-to-date information on ELSS investments and their tax implications. For more details, please visit: https://www.bajajfinserv.in/investments/elss-mutual-funds

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What is ELSS Mutual Fund?

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  1. What is ELSS Mutual Fund? ELSS stands for Equity Linked Savings Scheme, which is a type of mutual fund in India. It is a tax-saving investment option that allows individuals to invest in the Indian stock market while also providing them with tax benefits under Section 80C of the Income Tax Act.

  2. Key Features of ELSS Mutual Funds Tax Benefits: ELSS investments offer tax deductions of up to ₹1.5 lakh per financial year under Section 80C of the Income Tax Act. This means that the amount invested in ELSS can be claimed as a deduction from your taxable income, reducing your overall tax liability. Lock-in Period: ELSS funds come with a mandatory lock-in period of three years. This means that you cannot redeem or withdraw your investment for three years from the date of investment. This lock-in period is shorter compared to other tax-saving options like Public Provident Fund (PPF) or National Savings Certificate (NSC).

  3. Equity Exposure: ELSS funds primarily invest in equities or stocks, which have the potential for higher returns but also come with higher risk compared to debt-based investments. The equity exposure can vary from one ELSS fund to another, so investors should choose a fund that aligns with their risk tolerance and investment goals. SIP Option: Investors can choose to invest in ELSS through Systematic Investment Plans (SIPs), which allow them to invest a fixed amount regularly at predefined intervals (e.g., monthly). Diversification: ELSS funds typically invest in a diversified portfolio of stocks, which helps spread the risk across different sectors and companies.

  4. Thank You For more details, please visit: https://www.bajajfinserv.in/investments/elss-mutual-funds

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