Best ELSS Mutual Funds For Investment In November 2024
ELSS (Equity Linked Saving Scheme), which provides tax deductions and high returns. Investors can annually invest up to Rs. 1.5 lakh in ELSS funds and claim a tax deduction on investment under Section 80C of the Income Tax Act. If you want to save taxes, investing in this mutual fund scheme can be a smart choice.
Who can Invest in ELSS Funds?
This is suitable for taxpayers who are willing to take the risk associated with equity-related tax-saving instruments. ELSS is the only option under Section 80C that provides a lock-in period of three years when providing tax benefits.
What Factors to Keep in Mind When Investing in ELSS Funds?
ELSS funds do not provide guaranteed returns because they are fully dependent on the performance of the underlying securities.
ELSS funds also come with a lock-in period, and the minimum lock-in period is 3 years. The minimum period for keeping an investment is 3 years, and during this time the holding can’t be redeemed.
For ELSS funds investment, there should be a longer investment horizon, which is longer than five years.
Advantages of Investing in the Best ELSS Funds:
Investments up to Rs. 1.5 lakh are applicable for tax deductions as per the provisions of the Income Tax Act can be beneficial for the investors.
ELSS Mutual Funds’ 3-year lock-in period is the shortest, as compared to other tax-saving investment options. For example, the minimum maturity period of PPF is 15 years; in this case, the tax-saving fund schemes will be more liquid.
These are The Best ELSS Mutual Funds to Invest In November 2024:
- Mirae Asset ELSS Tax Saver Fund
- Canara Robeco ELSS Tax Saver Fund
- Invesco India ELSS Tax Saver Fund
- DSP ELSS Tax Saver Fund
- Quant ELSS Tax Saver Fund
- Bank of India ELSS Tax Saver
What Risk Is Involved When Investing in ELSS Funds?
Before investing in this scheme, you should familiarize yourself with ELSSs. This fund will be risky If you are investing for the first time in ELSS funds. As compared to PPF, national savings certificate, etc, this fund does not offer guaranteed returns. You may experience losses in a bad market.
There are two investment modes individuals can invest in the Best ELSS Mutual Fund or Tax Saving Mutual Fund, which are SIP (Systematic Investment Plan) and Lumpsum. SIP allows investors to invest in a scheme by paying fixed instalments monthly, quarterly, annually, etc. On the other hand, the lump-sum method allows individuals to invest the available funds in an ELSS mutual fund scheme at once.
