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Get Dual Benefit Wealth Creation And Save Taxes through ELSS (Equity Linked Saving Scheme)

Get Dual Benefit Wealth Creation And Save Taxes through ELSS (Equity Linked Saving Scheme)
The way to save taxes under section 80c up to Rs. 1.5Lac.It will help you save taxes up to Rs. 46,800*/- (*For 2018-19 & for individuals who fall under highest tax bracket).Advantages1. Higher Tax adjusted Return As returns are market-linked, ELSS has the potential to deliver higher tax-adjusted returns than traditional tax saving options.2. Stability in terms of Exist of Funds Since there is a lock-in period from 3 years from the date of allotment of units. The fund manager has to opportunity to invest long term, as he doesn’t have worry about redemption.3. Lower lock-in period In comparison to various other investment avenues under section 80C of the Income-tax Act.ELSS has the shortest lock-in period of 3 years.4. Cost Averaging Investment in ELSS Through Sip route can help you to average out your purchasing price.Consider an example, where investor A has invested Rs. 1 Lac p.a. in PPF since 31 May 2003 till 31ˢᵗ May 2018 whereas investor B has chosen the ELSS route. Investor B has invested Rs. 1 Lac p.a. for the same period. Let us see how the investments of both the investors A & B fared in the last 15 years. The table shown below the graph shows the wealth created by investor A and investor B in the last 15 years. Investor A, who chose PPF, has gathered Rs. 30.01 Lacs, which is double the investment of Rs. 15 Lacs. On the other side, investor B who chose the ELSS route has generated a wealth of Rs. 90.25 Lacs,which is 6 times the investment of Rs. 15 Lacs.* For calculation purpose, we have taken only those schemes, which have completed at least 15 years as on 31ˢᵗ May 2018. 20.47% is the average CAGR return delivered by these 14 schemes since last 15 years.(Past performance may or may not sustain in future) Disclaimer: The information contained in this report has been obtained from various sources. While utmost care has been taken for the preparation of this report, we do not guarantee its validity or completeness. Neither any information nor any opinions expressed constitute an offer, or an invitation to make an offer to buy or sell any fund. Investors should take financial advice with respect to the suitability of investing their monies in any fund discussed in this report. Mutual fund investments are subject to market risk. Please read Scheme Information Document and Statement of Additional Information carefully before investing
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