Every individual has financial goals. You might have classified them into short term goals (less than 3 years), midterm goals (3 to 5 years) and long term goals (more than 5 years). In order to fulfill your midterm goals, you would be looking to invest somewhere. In order to find further information on ELSS visit India’s First Free On call Financial Advisory, Moneymindz which is of the opinion that you have an option of Equity Linked Savings Scheme in order to fulfill your midterm financial goals.
What is Equity-linked savings scheme?
Equity-linked savings scheme is a close-ended diversified equity scheme having a lock-in period of 3 years offered by Mutual Funds in India. They help you save money apart from letting your money grow. India’s First Free On call Financial Advisory, Moneymindz observes that ELSS comes with tax saving options apart from investment options. ELSS can be invested using Systematic Investment Plans (SIP) and lump sum amounts.
Features of Equity Linked Savings Scheme
- Diversified equity mutual funds
Most ELSS schemes invest in diversified equities like large cap, midcap and small cap. Most of the assets are invested in equities in general by ELSS.
- 3 years lock-in period
There is no provision to exit an ELSS fund within 3 years. Only after 3 years, you can exit the ELSS fund.
- Invest either as lump sum or SIP
You can select if you want invest via Systematic Investment Plan or as a lump sum. The choice is left for you to decide what is appropriate for you.
Merits of Equity Linked Savings Scheme
- Lesser lock in period compared to PPF and other schemes
Public Provident Fund has a lock-in period of 15 years. But Equity Linked Savings Scheme has a lock-in period of 3 years only.
- Invest for the long term
You’re probably thinking how it would be long term if the tenure is 3 years only. You must be aware that you can extend the tenure and earn higher returns.
- Tax efficient
ELSS funds are tax-efficient investments as the money invested in ELSS can be claimed as a deduction under Section 80C to an upper limit of Rs1.5 lakh.
- People of all income groups can invest here
Regardless of which economic background you are from, ELSS funds suit you and you can invest in ELSS.
Avail more information with Smart Financial Advisor, Kuber Mindz at www.moneymindz.com or give a missed call to 022-62116588