For most of the investors, mutual funds seem to be tedious especially with the market volatility determining the corpus returns. The rate of returns may or may not meet all of your interests and expectations. But one thing is sure that traditional investments are beaten by the mutual fund with its good rates of return varying from 13% to 15% when compared with 7% to 8% of the traditional. With different types of mutual funds in the market, everyone takes effort and make research to find the best one that provides them better returns and benefits. Here is one of the best one for you.
ELSS has become a popular term in the mutual fund market. But, most of the investors have still doubts about what is elss investment. In simple words, ELSS is Equity Linked Savings Schemes and is one of the best tax saving mutual funds to select from. It comes with double benefits of creating wealth and saving tax. This unique feature of ELSS results in a steady rise in the numbers of people or investors who take advantage of ELSS. This fund helps you get a tax deduction of Rs. 1,50,000 under Section 80C of the Income Tax Act, 1961. Here are other benefits of ELSS fund.
Lowest lock-in period
Most of the investors of the present generation hate investing for a long period of time. They search for investment products with lowest lock-in periods. Public provident funds and Fixed deposit option comes with a lock-in period of 15 years and 5 years respectively. The term period of most of the mutual funds varies from 5 years to 7 years. But ELSS comes with the minimum lock-in period of just 3 years. This means that ELSS provides you with a good opportunity to earn good returns within a short period of time.
Freedom to start with low investment
Intelligent investors never put the whole amount of money on a single mutual fund. They will look for the funds that help them to start with the lowest possible amount. ELSS provides this opportunity and there is no need for you to invest a lump sum amount and you can start with an amount of Rs. 500 or less to make the initial investment. This is one of the best reasons to invest in mutual funds for the first time investors. You can increase the investment amount once you are familiar and comfortable with the process and market.
Easy and convenient investment options
ELSS provides you with the option of a systematic investment plan where you can invest a small and fixed amount of money during regular intervals; to say on a monthly basis. This helps you to grow as a disciplined and committed investor and to earn decent returns on incomes at the same time of managing the risks and saving the tax.
Now, you better know what is elss investment. Never miss the best opportunity to make good returns from the best tax saving mutual fund. Be free from all of the usual hassles by purchasing ELSS fund online.