fincash logo SOLUTIONS
EXPLORE FUNDS
CALCULATORS
LOG IN
SIGN UP

Fincash » Mutual Funds » TaxSaver

Why ELSS Over Other Tax Saving Investments

Updated on August 14, 2019 , 116 views

ELSS funds also known as Equity Linked Savings Scheme is an equity-diversified tax saving Mutual Fund that majorly invests its assets in equities or equity-linked instruments like stock markets. The ELSS Mutual Funds offer market-linked returns, which are volatile and are dependent on the market conditions. However, financial advisors suggest Investing in ELSS funds for a long duration, as these ELSS Mutual funds generate best returns when invested for a longer duration. In the recent reports, it was seen that ELSS funds generated around 20%-30% returns when invested for 3 years, which is much more than the returns generated by other Mutual Funds.

ELSS

Comparison Of ELSS & Other Tax Saving Investment Options

The comparison of ELSS and other tax saving is based on parameters like tenure, returns, eligibility for deduction under 80c, etc.

Let's have a look:

Parameter PPF NSC FD ELSS
Tenure 15 years 6 years 5 Years 3 years
Returns 7.60 % (Compounded Annually) 7.60 % (Compounded Annually) 7.00 - 8.00 % (Compounded Annually) No Assured Divividend / Return as it market linked
Min. Investment Rs. 500 Rs. 100 Rs. 1000 Rs. 500
Max. Investment Rs. 1.5 Lakhs No Upper Limit No Upper Limit No Upper Limit
Amount Eligible for Deduction under 80c Rs. 1.5 Lakhs Rs. 1.5 Lakhs Rs. 1.5 Lakhs Rs. 1.5 Lakhs
Taxation for Interest/return Tax-Free Interest Taxable Interest Taxable Gains up to Rs 1 lakh are free of tax. Tax at 10% applies to gains above Rs 1 lakh
Safety/Ratings Safe Safe Safe Risk

Top 5 ELSS Funds To Invest In 2019

Below is the list of Fund having Net Assets/AUM between 100 - 200 Crores.

FundNAVNet Assets (Cr)3 MO (%)6 MO (%)1 YR (%)3 YR (%)5 YR (%)2018 (%)
Tata India Tax Savings Fund Growth ₹17.3786
↑ 0.01
₹1,903-0.94.7-2.28.6 -8.4
Principal Tax Savings Fund Growth ₹192.52
↑ 0.28
₹407-3.10.8-9.289.2-9.2
BNP Paribas Long Term Equity Fund (ELSS) Growth ₹37.463
↑ 0.04
₹4712.6706.59.1-9.3
Kotak Tax Saver Scheme Growth ₹42.419
↑ 0.03
₹942-0.85.7-0.98.511.7-3.8
HDFC Long Term Advantage Fund Growth ₹341.239
↑ 0.19
₹1,451-2.82.9-2.59.59.3-3.9
Note: Returns up to 1 year are on absolute basis & more than 1 year are on CAGR basis. as on 16 Aug 19

Ready to Invest?
Talk to our investment specialist
Disclaimer:
By submitting this form I authorize Fincash.com to call/SMS/email me about its products and I accept the terms of Privacy Policy and Terms & Conditions.

1. Tata India Tax Savings Fund

To provide medium to long term capital gains along with income tax relief to its Unitholders, while at all times emphasising the importance of capital appreciation..

Tata India Tax Savings Fund is a Equity - ELSS fund was launched on 13 Oct 14. It is a fund with Moderately High risk and has given a CAGR/Annualized return of 12.1% since its launch.  Ranked 1 in ELSS category.  Return for 2018 was -8.4% , 2017 was 46% and 2016 was 2.1% .

Below is the key information for Tata India Tax Savings Fund

Tata India Tax Savings Fund
Growth
Launch Date 13 Oct 14
NAV (16 Aug 19) ₹17.3786 ↑ 0.01   (0.03 %)
Net Assets (Cr) ₹1,903 on 30 Jun 19
Category Equity - ELSS
AMC Tata Asset Management Limited
Rating
Risk Moderately High
Expense Ratio 2.61
Sharpe Ratio 0.55
Information Ratio -0.17
Alpha Ratio -0.8
Min Investment 500
Min SIP Investment 500
Exit Load NIL

Growth of 10,000 investment over the years.

DateValue
31 Jul 15₹11,807
31 Jul 16₹13,072
31 Jul 17₹15,988
31 Jul 18₹16,984
31 Jul 19₹16,911

Tata India Tax Savings Fund SIP Returns

   
My Monthly Investment:
Investment Tenure:
Years
Expected Annual Returns:
%
Total investment amount is ₹300,000
expected amount after 5 Years is ₹376,357.
Net Profit of ₹76,357
Invest Now

Returns for Tata India Tax Savings Fund

Returns up to 1 year are on absolute basis & more than 1 year are on CAGR (Compound Annual Growth Rate) basis. as on 16 Aug 19

DurationReturns
1 Month -5.7%
3 Month -0.9%
6 Month 4.7%
1 Year -2.2%
3 Year 8.6%
5 Year
10 Year
15 Year
Since launch 12.1%
Historical performance (Yearly) on absolute basis
YearReturns
2018 -8.4%
2017 46%
2016 2.1%
2015 13.3%
2014
2013
2012
2011
2010
2009
Fund Manager information for Tata India Tax Savings Fund
NameSinceTenure
Rupesh Patel1 Apr 153.84 Yr.
Ennette Fernandes18 Jun 180.62 Yr.

Data below for Tata India Tax Savings Fund as on 30 Jun 19

Equity Sector Allocation
SectorValue
Financial Services42.22%
Technology10.43%
Industrials9.9%
Consumer Cyclical9.39%
Consumer Defensive7.05%
Health Care6.3%
Energy4.99%
Basic Materials2.56%
Real Estate0.72%
Asset Allocation
Asset ClassValue
Cash6.43%
Equity93.57%
Top Securities Holdings / Portfolio
NameHoldingValueQuantity
ICICI Bank Ltd (Financial Services)
Equity, Since 30 Nov 16 | ICICIBANK
9%₹170 Cr4,015,000
Infosys Ltd (Technology)
Equity, Since 30 Sep 18 | INFY
7%₹133 Cr1,680,000
HDFC Bank Ltd (Financial Services)
Equity, Since 28 Feb 10 | HDFCBANK
7%₹126 Cr560,000
A) Repo
CBLO/Reverse Repo | -
6%₹111 Cr
State Bank of India (Financial Services)
Equity, Since 30 Nov 18 | SBIN
6%₹103 Cr3,100,000
Axis Bank Ltd (Financial Services)
Equity, Since 31 Aug 18 | 532215
6%₹101 Cr1,500,000
Kotak Mahindra Bank Ltd (Financial Services)
Equity, Since 31 May 15 | KOTAKBANK
4%₹75 Cr495,000
Housing Development Finance Corp Ltd (Financial Services)
Equity, Since 30 Jun 17 | HDFC
4%₹72 Cr340,000
Reliance Industries Ltd (Energy)
Equity, Since 31 Jan 18 | RELIANCE
3%₹58 Cr500,000
Tata Consultancy Services Ltd (Technology)
Equity, Since 31 Jul 18 | TCS
3%₹55 Cr250,000

2. Principal Tax Savings Fund

To build a high quality growth-oriented portfolio to provide long-term capital gains to the investors, the scheme aims at providing returns through capital appreciation.

Principal Tax Savings Fund is a Equity - ELSS fund was launched on 31 Mar 96. It is a fund with Moderately High risk and has given a CAGR/Annualized return of 15.5% since its launch.  Ranked 8 in ELSS category.  Return for 2018 was -9.2% , 2017 was 48.8% and 2016 was 6.2% .

Below is the key information for Principal Tax Savings Fund

Principal Tax Savings Fund
Growth
Launch Date 31 Mar 96
NAV (16 Aug 19) ₹192.52 ↑ 0.28   (0.15 %)
Net Assets (Cr) ₹407 on 30 Jun 19
Category Equity - ELSS
AMC Principal Pnb Asset Mgmt. Co. Priv. Ltd.
Rating
Risk Moderately High
Expense Ratio 2.88
Sharpe Ratio 0.01
Information Ratio 0.02
Alpha Ratio -3.89
Min Investment 500
Min SIP Investment 500
Exit Load NIL

Growth of 10,000 investment over the years.

DateValue
31 Jul 14₹10,000
31 Jul 15₹11,991
31 Jul 16₹12,425
31 Jul 17₹16,206
31 Jul 18₹17,353
31 Jul 19₹15,952

Principal Tax Savings Fund SIP Returns

   
My Monthly Investment:
Investment Tenure:
Years
Expected Annual Returns:
%
Total investment amount is ₹300,000
expected amount after 5 Years is ₹385,859.
Net Profit of ₹85,859
Invest Now

Returns for Principal Tax Savings Fund

Returns up to 1 year are on absolute basis & more than 1 year are on CAGR (Compound Annual Growth Rate) basis. as on 16 Aug 19

DurationReturns
1 Month -6.1%
3 Month -3.1%
6 Month 0.8%
1 Year -9.2%
3 Year 8%
5 Year 9.2%
10 Year
15 Year
Since launch 15.5%
Historical performance (Yearly) on absolute basis
YearReturns
2018 -9.2%
2017 48.8%
2016 6.2%
2015 2.7%
2014 49.4%
2013 8.5%
2012 46.5%
2011 -30.4%
2010 15%
2009 64.7%
Fund Manager information for Principal Tax Savings Fund
NameSinceTenure
Ravi Gopalakrishnan29 Jul 190 Yr.

Data below for Principal Tax Savings Fund as on 30 Jun 19

Equity Sector Allocation
SectorValue
Financial Services33.22%
Basic Materials14.77%
Consumer Defensive12.19%
Technology8.79%
Industrials7.52%
Consumer Cyclical5.82%
Utility5.5%
Health Care4.36%
Energy4.11%
Communication Services1.85%
Asset Allocation
Asset ClassValue
Cash1.87%
Equity98.13%
Top Securities Holdings / Portfolio
NameHoldingValueQuantity
ICICI Bank Ltd (Financial Services)
Equity, Since 31 Oct 09 | ICICIBANK
6%₹22 Cr509,143
HDFC Bank Ltd (Financial Services)
Equity, Since 31 Jul 09 | HDFCBANK
5%₹21 Cr91,334
State Bank of India (Financial Services)
Equity, Since 30 Apr 05 | SBIN
4%₹16 Cr479,851
Reliance Industries Ltd (Energy)
Equity, Since 31 Mar 08 | RELIANCE
4%₹16 Cr134,452
Tata Consultancy Services Ltd (Technology)
Equity, Since 30 Apr 14 | TCS
4%₹15 Cr66,040
Kotak Mahindra Bank Ltd (Financial Services)
Equity, Since 31 Jan 16 | KOTAKBANK
4%₹14 Cr89,915
ITC Ltd (Consumer Defensive)
Equity, Since 29 Feb 12 | ITC
3%₹12 Cr455,396
Infosys Ltd (Technology)
Equity, Since 31 Jan 09 | INFY
3%₹11 Cr136,594
Larsen & Toubro Ltd (Industrials)
Equity, Since 31 Mar 13 | LT
3%₹11 Cr77,262
Marico Ltd (Consumer Defensive)
Equity, Since 31 Aug 18 | 531642
3%₹10 Cr276,100

3. BNP Paribas Long Term Equity Fund (ELSS)

The investment objective of the Scheme is to generate long-term capital growth from a diversified and actively managed portfolio of equity and equity related securities along with income tax rebate, as may be prevalent fromtime to time. However, there can be no assurance that the investment objective of the Scheme will be achieved. The Scheme does not guarantee / indicate any returns.

BNP Paribas Long Term Equity Fund (ELSS) is a Equity - ELSS fund was launched on 5 Jan 06. It is a fund with Moderately High risk and has given a CAGR/Annualized return of 10.2% since its launch.  Ranked 22 in ELSS category.  Return for 2018 was -9.3% , 2017 was 42.3% and 2016 was -6.6% .

Below is the key information for BNP Paribas Long Term Equity Fund (ELSS)

BNP Paribas Long Term Equity Fund (ELSS)
Growth
Launch Date 5 Jan 06
NAV (16 Aug 19) ₹37.463 ↑ 0.04   (0.11 %)
Net Assets (Cr) ₹471 on 30 Jun 19
Category Equity - ELSS
AMC BNP Paribas Asset Mgmt India Pvt. Ltd
Rating
Risk Moderately High
Expense Ratio 2.75
Sharpe Ratio 0.37
Information Ratio -0.82
Alpha Ratio 0.38
Min Investment 500
Min SIP Investment 500
Exit Load NIL

Growth of 10,000 investment over the years.

DateValue
31 Jul 14₹10,000
31 Jul 15₹13,207
31 Jul 16₹13,137
31 Jul 17₹15,281
31 Jul 18₹15,772
31 Jul 19₹15,696

BNP Paribas Long Term Equity Fund (ELSS) SIP Returns

   
My Monthly Investment:
Investment Tenure:
Years
Expected Annual Returns:
%
Total investment amount is ₹300,000
expected amount after 5 Years is ₹385,859.
Net Profit of ₹85,859
Invest Now

Returns for BNP Paribas Long Term Equity Fund (ELSS)

Returns up to 1 year are on absolute basis & more than 1 year are on CAGR (Compound Annual Growth Rate) basis. as on 16 Aug 19

DurationReturns
1 Month -2.8%
3 Month 2.6%
6 Month 7%
1 Year 0%
3 Year 6.5%
5 Year 9.1%
10 Year
15 Year
Since launch 10.2%
Historical performance (Yearly) on absolute basis
YearReturns
2018 -9.3%
2017 42.3%
2016 -6.6%
2015 7.7%
2014 53%
2013 7.7%
2012 34.3%
2011 -15%
2010 14.9%
2009 70.2%
Fund Manager information for BNP Paribas Long Term Equity Fund (ELSS)
NameSinceTenure
Abhijeet Dey16 Nov 162.54 Yr.
Karthikraj Lakshmanan7 Oct 162.65 Yr.

Data below for BNP Paribas Long Term Equity Fund (ELSS) as on 30 Jun 19

Equity Sector Allocation
SectorValue
Financial Services36.29%
Industrials10.3%
Technology9.19%
Basic Materials8.42%
Consumer Cyclical8.42%
Utility5.76%
Consumer Defensive4.95%
Communication Services1.58%
Energy1.3%
Health Care1.07%
Asset Allocation
Asset ClassValue
Cash5.86%
Equity94.14%
Top Securities Holdings / Portfolio
NameHoldingValueQuantity
Treps
CBLO/Reverse Repo | -
12%₹54 Cr
HDFC Bank Ltd (Financial Services)
Equity, Since 31 Oct 08 | HDFCBANK
9%₹41 Cr180,000
↓ -10,000
ICICI Bank Ltd (Financial Services)
Equity, Since 31 Oct 12 | ICICIBANK
9%₹38 Cr900,000
↑ 100,000
Infosys Ltd (Technology)
Equity, Since 31 Mar 09 | INFY
6%₹26 Cr325,000
↑ 120,000
Tata Consultancy Services Ltd (Technology)
Equity, Since 30 Jun 18 | TCS
3%₹15 Cr70,000
Axis Bank Ltd (Financial Services)
Equity, Since 31 Aug 18 | 532215
3%₹15 Cr227,141
↓ -67,859
ICICI Prudential Life Insurance Co Ltd (Financial Services)
Equity, Since 31 Oct 17 | ICICIPRULI
3%₹14 Cr354,999
↑ 25,000
Larsen & Toubro Ltd (Industrials)
Equity, Since 31 Oct 17 | LT
3%₹13 Cr95,988
↓ -25,000
Kotak Mahindra Bank Ltd (Financial Services)
Equity, Since 28 Feb 15 | KOTAKBANK
3%₹13 Cr85,000
↑ 10,000
Asian Paints Ltd (Basic Materials)
Equity, Since 31 Oct 14 | 500820
3%₹12 Cr77,500

4. Kotak Tax Saver Scheme

The investment objective of the scheme is to generate longterm capital appreciation from a diversified portfolio of equity and equity related securities and enable investors to avail the income tax rebate, as permitted from time to time.

Kotak Tax Saver Scheme is a Equity - ELSS fund was launched on 23 Nov 05. It is a fund with Moderately High risk and has given a CAGR/Annualized return of 11.1% since its launch.  Ranked 19 in ELSS category.  Return for 2018 was -3.8% , 2017 was 33.8% and 2016 was 7.5% .

Below is the key information for Kotak Tax Saver Scheme

Kotak Tax Saver Scheme
Growth
Launch Date 23 Nov 05
NAV (16 Aug 19) ₹42.419 ↑ 0.03   (0.06 %)
Net Assets (Cr) ₹942 on 30 Jun 19
Category Equity - ELSS
AMC Kotak Mahindra Asset Management Co Ltd
Rating
Risk Moderately High
Expense Ratio 2.73
Sharpe Ratio 0.7
Information Ratio 0.21
Alpha Ratio 6.3
Min Investment 500
Min SIP Investment 500
Exit Load NIL

Growth of 10,000 investment over the years.

DateValue
31 Jul 14₹10,000
31 Jul 15₹13,529
31 Jul 16₹13,850
31 Jul 17₹16,956
31 Jul 18₹17,777
31 Jul 19₹17,750

Kotak Tax Saver Scheme SIP Returns

   
My Monthly Investment:
Investment Tenure:
Years
Expected Annual Returns:
%
Total investment amount is ₹300,000
expected amount after 5 Years is ₹405,518.
Net Profit of ₹105,518
Invest Now

Returns for Kotak Tax Saver Scheme

Returns up to 1 year are on absolute basis & more than 1 year are on CAGR (Compound Annual Growth Rate) basis. as on 16 Aug 19

DurationReturns
1 Month -5%
3 Month -0.8%
6 Month 5.7%
1 Year -0.9%
3 Year 8.5%
5 Year 11.7%
10 Year
15 Year
Since launch 11.1%
Historical performance (Yearly) on absolute basis
YearReturns
2018 -3.8%
2017 33.8%
2016 7.5%
2015 1.5%
2014 56.6%
2013 -6.3%
2012 36.2%
2011 -26%
2010 19.9%
2009 75%
Fund Manager information for Kotak Tax Saver Scheme
NameSinceTenure
Harsha Upadhyaya25 Aug 153.44 Yr.

Data below for Kotak Tax Saver Scheme as on 30 Jun 19

Equity Sector Allocation
SectorValue
Asset Allocation
Asset ClassValue
Cash2.28%
Equity97.67%
Debt0%
Other0.05%
Top Securities Holdings / Portfolio
NameHoldingValueQuantity
ICICI Bank Ltd (Financial Services)
Equity, Since 31 Oct 09 | ICICIBANK
7%₹59 Cr1,400,000
↑ 25,000
Reliance Industries Ltd (Energy)
Equity, Since 30 Jun 06 | RELIANCE
6%₹54 Cr464,000
HDFC Bank Ltd (Financial Services)
Equity, Since 31 Jan 10 | HDFCBANK
6%₹54 Cr240,000
Axis Bank Ltd (Financial Services)
Equity, Since 31 Mar 13 | 532215
6%₹52 Cr775,000
Tata Consultancy Services Ltd (Technology)
Equity, Since 30 Apr 18 | TCS
4%₹37 Cr170,000
Infosys Ltd (Technology)
Equity, Since 31 Dec 05 | INFY
4%₹36 Cr450,000
Larsen & Toubro Ltd (Industrials)
Equity, Since 28 Feb 14 | LT
4%₹35 Cr250,000
GlaxoSmithKline Consumer Healthcare Ltd (Consumer Defensive)
Equity, Since 30 Nov 17 | 500676
4%₹33 Cr45,000
SRF Ltd (Basic Materials)
Equity, Since 30 Apr 16 | SRF
3%₹28 Cr105,000
AU Small Finance Bank Ltd (Financial Services)
Equity, Since 30 Jun 17 | 540611
3%₹27 Cr395,000

5. HDFC Long Term Advantage Fund

To generate long term capital appreciation from a portfolio that is predominantly in equity and equity related instruments

HDFC Long Term Advantage Fund is a Equity - ELSS fund was launched on 2 Jan 01. It is a fund with Moderately High risk and has given a CAGR/Annualized return of 20.9% since its launch.  Ranked 23 in ELSS category.  Return for 2018 was -3.9% , 2017 was 36.2% and 2016 was 13% .

Below is the key information for HDFC Long Term Advantage Fund

HDFC Long Term Advantage Fund
Growth
Launch Date 2 Jan 01
NAV (16 Aug 19) ₹341.239 ↑ 0.19   (0.06 %)
Net Assets (Cr) ₹1,451 on 30 Jun 19
Category Equity - ELSS
AMC HDFC Asset Management Company Limited
Rating
Risk Moderately High
Expense Ratio 2.49
Sharpe Ratio 0.59
Information Ratio -0.12
Alpha Ratio -0.78
Min Investment 500
Min SIP Investment 500
Exit Load NIL

Growth of 10,000 investment over the years.

DateValue
31 Jul 14₹10,000
31 Jul 15₹11,292
31 Jul 16₹11,965
31 Jul 17₹15,180
31 Jul 18₹16,305
31 Jul 19₹16,123

HDFC Long Term Advantage Fund SIP Returns

   
My Monthly Investment:
Investment Tenure:
Years
Expected Annual Returns:
%
Total investment amount is ₹300,000
expected amount after 5 Years is ₹385,859.
Net Profit of ₹85,859
Invest Now

Purchase not allowed

Returns for HDFC Long Term Advantage Fund

Returns up to 1 year are on absolute basis & more than 1 year are on CAGR (Compound Annual Growth Rate) basis. as on 16 Aug 19

DurationReturns
1 Month -6.6%
3 Month -2.8%
6 Month 2.9%
1 Year -2.5%
3 Year 9.5%
5 Year 9.3%
10 Year
15 Year
Since launch 20.9%
Historical performance (Yearly) on absolute basis
YearReturns
2018 -3.9%
2017 36.2%
2016 13%
2015 -2.4%
2014 44.7%
2013 11%
2012 28.8%
2011 -23.5%
2010 28.4%
2009 88.9%
Fund Manager information for HDFC Long Term Advantage Fund
NameSinceTenure
Chirag Setalvad2 Apr 0712 Yr.
Amar Kalkundrikar10 Jan 190.22 Yr.

Data below for HDFC Long Term Advantage Fund as on 30 Jun 19

Equity Sector Allocation
SectorValue
Financial Services34.89%
Industrials15.62%
Technology11.72%
Energy11.24%
Basic Materials8.87%
Consumer Defensive5.71%
Utility2.35%
Health Care2.11%
Consumer Cyclical1.84%
Communication Services1.29%
Asset Allocation
Asset ClassValue
Cash4.33%
Equity95.67%
Top Securities Holdings / Portfolio
NameHoldingValueQuantity
ICICI Bank Ltd (Financial Services)
Equity, Since 31 Oct 09 | ICICIBANK
10%₹144 Cr3,300,000
HDFC Bank Ltd (Financial Services)
Equity, Since 30 Jun 13 | HDFCBANK
10%₹142 Cr580,000
↓ -25,000
Reliance Industries Ltd (Energy)
Equity, Since 31 Jul 05 | RELIANCE
9%₹125 Cr1,000,000
Infosys Ltd (Technology)
Equity, Since 30 Nov 06 | INFY
7%₹106 Cr1,453,908
Larsen & Toubro Ltd (Industrials)
Equity, Since 31 Oct 07 | LT
7%₹94 Cr607,500
State Bank of India (Financial Services)
Equity, Since 31 Jan 03 | SBIN
6%₹94 Cr2,600,000
Housing Development Finance Corp Ltd (Financial Services)
Equity, Since 31 Oct 08 | HDFC
6%₹88 Cr400,000
ITC Ltd (Consumer Defensive)
Equity, Since 31 Oct 05 | ITC
5%₹77 Cr2,822,910
Net Current Assets
Net Current Assets | -
4%₹65 Cr
Vesuvius India Ltd (Industrials)
Equity, Since 31 Jan 11 | 520113
3%₹45 Cr400,000

How ELSS Better Than Other Tax Saving Investments?

There are various Tax Saving Investment options in India among which ELSS is one of the best options. How? Here are some of the reasons mentioned.

High Returns over Long-Term

The ELSS funds allocate the highest number of assets in stock market among other tax saving investments. So, these funds earn best Inflation-beating returns amongst all. If invested for a longer duration, the rate of returns of ELSS can easily beat the returns of other traditional debt-oriented investments. Therefore, ELSS Mutual funds provide investors with the best of both worlds- high returns and tax benefits.

Shortest Lock-in Period

The ELSS Mutual Funds have a short lock-in period as compared to the traditional tax saving investment options. The lock-in period of ELSS funds is 3 years while that of PPF is 15 years and of NPS is until retirement. So, by investing in ELSS your money does not get locked for a longer duration and you can stop investing soon after the lock-in is over.

Highly Flexible Investment

The flexibility of ELSS Mutual Funds is much more than all other tax saving investments. Unlike traditional investments, there is no need of investing in only one type of option. ELSS funds enable you to diversify your portfolio with different kinds of investments. Also, the investors can remain invested in these funds even after the lock-in period is over. So, once the lock-in is over, you can easily choose to remain invested or redeem as per your convenience.

Conclusion

In conclusion, here are a few tips for investors investing in ELSS Funds.

  • Start investing in ELSS early
  • Invest within your limits
  • Do not choose dividend reinvestment
  • Redeem slowly and gradually
  • Invest via a SIP
Disclaimer:
All efforts have been made to ensure the information provided here is accurate. However, no guarantees are made regarding correctness of data. Please verify with scheme information document before making any investment.
How helpful was this page ?
Rated 4.6, based on 5 reviews.
POST A COMMENT