You may have multiple goals for investing your money. If tax saving is one of them, then an Equity Linked Savings Scheme (ELSS) may be a good match. ELSS is an equity mutual fund that aligns seamlessly with the dual purpose of wealth accumulation and tax optimisation. Notably, ELSS stands out as the sole mutual fund category eligible for tax deductions under the Income Tax Act, 1961. Let's understand the specifics of investing in tax-saving ELSS mutual funds online.
Here is a step-by-step guide to investing in ELSS mutual funds:
Conclusion
ELSS mutual funds offer a riveting combination of tax savings and flexibility. They also have the shortest lock-in period as compared to other tax saving instruments. However, you must note that tax-saving ELSS mutual funds primarily invest in equity and equity-related securities. As a result, they can be volatile and carry risk. Therefore, it is advised to assess your risk appetite and investment goals before investing in them.
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MUTUAL FUND INVESTMENTS ARE SUBJECT TO MARKET RISKS. READ ALL SCHEME-RELATED DOCUMENTS CAREFULLY
MUTUAL FUND INVESTMENTS ARE SUBJECT TO MARKET RISKS, READ ALL SCHEME RELATED DOCUMENTS CAREFULLY.