What is ELSS? / What is ELSS full form? / Best ELSS Funds to invest in 2024- FAQ
ELSS is a type of mutual fund, which is linked with equity and have lock-in period of 3 years. This is a kind of tax saving option. Tax rebate up to Rs. 150000 is available in this scheme under section 80C.
Full form of ELSS is Equity Linked Saving Scheme. As the name suggested this is a saving plan which is linked to equity. This is available in SIP option also.
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Features of ELSS:
1. ELSS is linked with Equity.
2. ELSS involves high risk and high return compared to other saving plans.
3. ELSS have lock in period of 3 years.
4. Tax benefits under 80 C is available in ELSS.
5. There is no upper limit to invest in ELSS.
6. There is no premature closure in ELSS.
7. There are two options available to invest Lumpsum and SIP.
Benefits of ELSS:
1. ELSS have shortest lock in period of 3 years as compared to other tax saving options such as PPF for 15 years etc.
2. Provide more return than other saving plans such as PPF and FD.
3. Systematic investment option is available under this scheme. You can invest in monthly SIP option of this scheme.
4. ELSS can be start with very low amount as Rs. 100 only.
5. ELSS is easy to track, you can monitor your investment 24/7
Best ELSS Funds to invest in 2024.
Following are the some best ELSS funds where you can invest in 2024.
1. Quant ELSS Tax Saver Fund-Direct Plan –Growth
2. SBI Long Term Equity Fund-Direct Plan-Growth
3. HDFC ELSS Tax Saver-Direct Plan-Growth
4. DSP ELSS Tax Saver Fund-Direct Plan-Growth
5. Franklin India ELSS Tax saver Fund-Direct Plan-Growth
Equity Linked Saving Scheme (ELSS)- FAQs
Here are some most asked questions with answer about ELSS. These answers will help you to understand the ELSS in wide term and clear your doubts. These answers will help you to invest in ELSS confidently. For more help, you can take our free expert advice. Contact out WhatsApp number +919891337513.
What is the ELSS Scheme? Or what is ELSS mutual fund?
ELSS is a tax saving scheme which is linked to equity and have lock in period of 3 years. this is a good option to invest in high return plan.
Is ELSS tax free? Or Is ELSS taxable? Or Is ELSS tax free after 3 years?
In ELSS option tax rebate up to Rs. 150000 is available and you can save your tax up to Rs. 46,800. However long term capital gain @10% is applicable. If the gain is less than 1 lakh, then you need not to pay any tax.
Which is better FD or ELSS?
Tax Saving Fixed Deposits comes with 5 years of lock in period while ELSS have less lock in period of 3 years only. FD provides low rate of return compared to ELSS. In security terms FD is more secured than ELSS.
Can I invest more than 1.5 lakh in ELSS?
Yes, you can invest more than 1.5 lakh in ELSS. There is no maximum limit of investment in ELSS, but tax benefit under 80 c allowed up to 1.5 lakh only.
Is ELSS good or bad?
ELSS is good for investment of long run and for tax saving also.
Who is eligible for ELSS?
ELSS is good option for all class of person. Salaried can invest in this on monthly basis, they can choose SIP option. Beginner can also invest in this.
IS ELSS profitable?
ELSS is an equity linked scheme, returns of ELSS are fluctuating. In general, ELSS provide more return than any other saving option in long run.
Should I go for PPF or ELSS?
PPF have 15 years lock in period with 7-8 % return while ELSS have 3 years lock in period with an average return of 10-12%
How do I choose my ELSS funds?
Before choosing ELSS funds check some important factor such as Large Asset under Management (AUM), Crisil rating, Previous year performance, Fund Manager etc.