Equity Link Savings Schemes are similar to the normal equity diversified schemes that invest across the board and market segments. Features that differentiate ELSS from an open ended equity diversified scheme are tax saving benefit (deduction under Sec 80C) and a lock in period of three years.
The common retort to the oft-asked question by anxious investors, of the best way to save tax, is to invest in Post Office savings schemes, or perhaps a regular investment in a public provident fund, or to buy insurance policies.
It is unfortunate that the greatly advantageous Equity Linked Savings Scheme (ELSS) is hardly ever mentioned, which is not a surprise, since, even though it is one of the high yielding products, it remains one of the lesser known ones. That is another reason that investors do not yet comprehend the potential benefits of this product.
ELSS holds the advantage of being the only equity-based tax saving instrument available in the country today and offers tax deduction on investments up to Rs 1, 00,000, under Section 80C of the Income-Tax Act.
Why investing in ELSS?
33 Tax Benefit: Upto Rs one lakh under Section 80C.
34 Saves from Short Term Volatility: Lock in of three years.
35 Better Return than that of other savings instruments and similar to other equity schemes.
The common retort to the oft-asked question by anxious investors, of the best way to save tax, is to invest in Post Office savings schemes, or perhaps a regular investment in a public provident fund, or to buy insurance policies.
It is unfortunate that the greatly advantageous Equity Linked Savings Scheme (ELSS) is hardly ever mentioned, which is not a surprise, since, even though it is one of the high yielding products, it remains one of the lesser known ones. That is another reason that investors do not yet comprehend the potential benefits of this product.
ELSS holds the advantage of being the only equity-based tax saving instrument available in the country today and offers tax deduction on investments up to Rs 1, 00,000, under Section 80C of the Income-Tax Act.
Why investing in ELSS?
33 Tax Benefit: Upto Rs one lakh under Section 80C.
34 Saves from Short Term Volatility: Lock in of three years.
35 Better Return than that of other savings instruments and similar to other equity schemes.