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.