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The popularity of the Equity Linked Saving Scheme or the ELSS has grown immensely. Whenever it comes to investments or long-term savings, investment in the ELSS funds provesto be quite useful.
Benefits of ELSS and how is it better than other tax-saving options
The several benefits of ELSS are listed below –
- Tax Savings –Under section 80C, a tax deduction option of up to Rs 150,000 is prevalent in case of ELSS. Thus, with the help of ELSS, not only will you be saving some extra money from tax but also enjoying some of the best returns. Thus, they are one of the best tax saving mutual funds that you can opt for.
- Short Lock-in Period – The locking period associated with an ELSS in always less than the ones which are present under section 80C. Another great reason for people to prefer ELSS is that one can actually access funds faster and buying or paying for something becomes much easier.
- High Return on Investment (ROI)
The ELSS brings much higher ROI every year than its other tax-saving counterparts. If you are planning to become a long-time investor, then the ELSS would be a perfect choice. Returns of as much as 12% have also been reported in the past whereas a PPF or a fixed deposit will give you around 8% that is over a period of 10 years.
- Get inflation Protection
Real returns, when it comes to inflation, become quite low. But ELSS is mostly equity-based and moreover, the returns are tax-free. Thus, in case of inflation, you will have a higher gain with ELSS schemes. Opt for a long term investment plan, thus getting more gains in inflation just like this ELSS.
- Get the option of SIP
You might not be able to pay the entire money altogether. So, you can choose the SIP system. Thus the investor will get to fix the money at periodic intervals so you can work too. So, you can save a fixed amount of money daily and shove off the burden of paying the entire money at the same time from your shoulders.
If you are thinking about making some real money from your exciting endeavor, then schedule up to a diversified portfolio. You will also be introduced to several schemes that preach profit-maximization. Being one of the best long term mutual funds,they can give relief to your risk-return appetite. But before you invest your money, you must always consult an expert. Moreover, you will get flexible SIP operations. ELSS is something that everyone should do to invest money strategically. The numerous advantages of ELSS actually cloud the disadvantages, and thus financial planners can suggest it for boosting your savings.
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