The Fundamentals of Investing in ELSS

There are methods and norms for you to know regarding how to invest in ELSS. This is the tax savings mutual fund option to allow people make investments in the kind of funds the amount of which is Rs. 1.5 lakh and this will help you earn a suitable tax break specifically under the section 80C. In case of ELSS funding you earn the lowest lock-in profit amount among all the investment options at length. This is definitely for tenure of complete three years. At the time of investing in ELSS fund you are sure to get the highest return in the impending days. The minimum amount for this can be INR 500.

However, there are reasons to think why ELSS is the notable saving option among the rest. The deposition of INR 500 to an amount of INR 1.5 lakh is according to the amount of tax deduction based on the norms of the income tax act of section 80C. There is the three years of lock-in investment time. This will help you withdraw the complete amount after the successful completion of three years. However, you can only get the returns after the complete maturity of the fund and this is not at all taxable.

The only reason for this is that after one year of lock-in period the total investment will become absolutely tax free. In case of ELSS the lock-in period is of three years in the least. The funds are sure to come with the dividend option and under the same the investor has the ability to deliver the dividend even during the lock-in period. This is the sort of funding scheme with the huge growth option. Comparatively ELSS has the shortest lock-in period. This makes it the best investment option to handle even in the hardest times.

Above all things, you need to know how to invest in ELSS. After things are clear, you can start putting in money then and there. To invest in ELSS you have to be KYC Compliant. This will make you eligible to invest in ELSS like any option of direct mutual fund app. For the same, you need to fill in the form and you have to deposit the money either through check or by means of online transaction. You can make the investment in both the ways. It can be one time investment and when you don’t have enough money in hand you can go for SIP or systematic investment plans.

SIP is a flexible option in case of ELSS and with this you can invest an amount of NIR 500 every month. The advantage of making an investment with SIP is that it helps in reducing the risk and the volatility resulting from the upheaval in case of the real time money market. There is the only disadvantage associated with ELSS and that is the risk factor is higher when compared to NSC or PPF. Other than this, ELSS is the sure funding option you can choose to invest money at the right time.

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