AMFI Certified Mutual Fund Distributor: ARN 0962
Date of Regn: 30^th Jan-2003 | Validity Till: 23^rd Jan-2025

ELSS

Why ELSS?

At the end of any financial year, tax saving strategy is essential for a sound financial plan. These are usually the ones that offer tax benefits under Sec 80C of the Income Tax Act, 1961. One such investment option is Equity Linked Savings Scheme (ELSS) managed by mutual funds. ELSS along with tax deduction also give investors an opportunity to invest in equity markets to create tax free returns.

Why is it important?

Compared to other Tax Saving options, ELSS has the shortest lock-in period -three years.

Unlike NSC & Tax Saving Bank FD's, any profit gained from ELSS is entirely tax free.

While in PPF the investor is required to contribute once a year to avoid penalties, ELSS funds have no such mandatory requirements. Your initial investment of Rs.500 can be held for lifetime.

Do you know?

ELSS is the only 80C investment with the shortest locking period of 3 years....

Convenience & Benefits

ELSS is more convenient in term of longevity, capital gains and initial investment. While the risk factors might prove to be the same, when compared to other Tax Saving Schemes, ELSS is still the better choice.

S.No	Particulars	PPF	NSC	Bank Deposits	ULIPs	ELSS
1	Lock-in period	15 years	6 years	5 years (to avail80c benefits)	5 years	3 years
2	Minimum Investment	Rs.500	Rs.100	Rs.10,000	Depends on Premium	Rs.500
3	Minimum Investment Limit	Rs.100,000	No Limit	No Limit	No Limit	No Limit
4	Minimum Investment for 80C Benefits	Rs.100,000	Rs.100,000	Rs.100,000	Rs.100,000	Rs.100,000
5	Rate of Return (%)	8% yearly compounding	8% compounded half yearly	7-9% depending on bank	NA	Market Driven
6	Taxation on Income	Tax Free	Taxable	Taxable	Variable as per IT laws	Dividend + Long term capital gains are tax free

Do you know?

ELSS is the only 80C investment option with the least lock in period of 3 years....