How to invest in ELSS through SIP?

1. How to invest in ELSS throughSIP? ELSS Mutual Funds are a taxpayer’s delight. They fare better on numerous parameters when compared to other tax-saving alternatives U/S 80C. Forinstance: Least lock-in period for 80Cinvestment Amongst all tax-saving instruments, ELSS tax saving scheme has the shortest lock-in period of three years. Other options (Bank FD Deposits, PPF, NSC, life insurance policies) block the investment for anywhere between 5 to 15years. Market LinkedReturns ELSS tax saving schemeinvests predominantly inequities. Hence, they have the potential to generate better returns compared to theircounterparts. Cost Efficiency ofunits By doing ELSS investment through SIP, you get the advantage of Rupee Cost Averaging, i.e. byallocating a fixed amount of money every month in the ELSS tax saving scheme, you make the most of the market volatility by investing regularly irrespective of the market condition. This way, the average cost of buying the units is lower than any lump-suminvestment. Overall TaxEfficiency The returns from ELSS investments attract tax only if they are above Rs. One Lakh in a year. This makes them relativelytax-efficient. In-sync with financialgoals Unlike most tax-saving instruments, ELSS does not come with maturity or end date. Hence, you can continue to invest in them for as long as you want. This allows you to align the ELSS investments with specific financialgoals. ELSS investment throughSIP The goodness of ELSS tax saving scheme can get further enriched through Systematic Investment Plans. It gives investors tax benefits along with all the good things that are associated with Systematic Investment Plans suchas: ✔ Inculcate a sense of financial discipline through regularinvestments ✔ Spread the risk associated with investments across marketcycles ✔ Removes the need to “perfectly time” yourinvestments ✔ Ensures continuity even in adowntime ✔ Benefits of compounding and rupee costaveraging ✔ The flexibility of changing the value of contribution (or even stopping it in extremesituations) How to do ELSS investment throughSIP? ELSS investment through SIP can sometimes be a lengthy or cumbersome affair. But now you can do it online aswell.

2. No need to go to a bank to invest in ELSS tax saving scheme. You can do it from the comfort of your home, a café or any other place. All you need is an internet connection and your laptop or phone. And the cherry on the cake is that it is a completely paperless process. So, no inconvenience or hassle of filling lengthyforms! Choose the mutual fund scheme that you want to investin You need to choose the best ELSS tax saving scheme and then choose the one after doing an in-depth analysis of each scheme by clicking on the concerned fund name. Making an informed decision is of extremeimportance. Complete the KYCprocess KYC is instant and literally paperless. It is a one-time activity that acts as a universal registration for all mutual fund investments. You do not need to bother with getting photocopies of documents, signing or attesting them, etc. All you need is a selfie-and picture of some documents to complete your KYC. It is not an exaggeration to say that it will not more than 2 minutes of yourtime. Make your ELSS investment throughSIP Are you getting anxious with thoughts of writing and signing multiple cheques for your SIP payments? Don’t worry. There is a one-time registration process in which you need to submit the bank mandate form. This is basically giving authorization to your bank to release ELSS investment throughSIP. Since there is a mandatory lock-in period of 3 years for every unit purchased, ELSS investment through SIP tends to be sticky because, at no point of time, the entire portfolio can be redeemed at once! So, with a SIP in ELSS tax saving scheme, you can create your own wealth portfolio and get a tax advantage aswell.