An organized investment will not only give you
long term benefits but will also help you save tax. Equity-linked Saving
Schemes (ELSS) funds can help you save your taxes while the investment is made
on equity-related securities of corporates and other similar equities. If you
are willing to save up to Rs 46,800 in your Tax, then ELSS investment is
the best choice you can make. One of the advantages of investing in ELSS is
that there is no maximum limit of investment which indicates the fact that a
large part of your money can be freed from additional tax which you need to pay
otherwise.
The ways ELSS works
ELSS is a tax saving scheme under section 80C of
income tax. This is a mutual fund scheme with a locking period of three years.
The benefits of investing in such schemes are that the mutual fund returns
will grow over time and will provide you with great benefits at the time of
retirement. However, this type of scheme is open-end schemes allowing you to
withdraw the money after the locking period is over. It is suggested that the
fund should remain invested to make sure that the pre-decided goals of
retirement are met. Alongside saving your tax these saving schemes would offer
you security at the time of your retirement.
What are the benefits of investing in mutual
funds?