Income Tax Savings Fund/ELSS :
Thesse are also know as Equity Linked Savings Scheme Funds(ELSS)
There are various opportunities that individuals can avail, to save tax u/s 80C of Income tax Act like Public Provident Fund, National Savings Certificate.
When compared to these traditional tax savings instruments, an ELSS is more opportunistic for individuals, as it provides a shorter lock-in period of three years and potential for higher returns, which are exempt from taxes.
Key Features of ELSS Fund :
- Also provides tax benefits under section 80C of the Income Tax Act, 1961
- Lock-in period of only 3 years is the lowest amongst all section 80C options available today
- Shortest lock-in period of only 3 years as compared to other traditional tax saving instruments under section 80C option
- No entry load
- It offers a potential for a higher return and potential to earn tax-free dividend
- Also, there is no tax on long term capital gains on redemptions done after lock in period
- Flexibility to invest across market caps in high growth stocks
- A diversified equity fund that invests in the Indian equity markets
- Provides the opportunity to capitalize on India’s high paced growth
This product is suitable for investors who are seeking* :
- Long term wealth creation solution
- An Equity Linked Savings Scheme that aims to generate capital long term capital appreciation by primarily investing in equity and related securities.
*Investors should consult their financial advisers if in doubt about whether the product is suitable for them.