What is the other name of ELSS?
A Equity Linked Savings Scheme, popularly known as ELSS, is a type of diversified equity scheme which comes, with a lock-in period of three years, offered by mutual funds in India.
What is meant by ELSS funds?
An Equity Linked Saving Scheme (ELSS) is an open-ended equity mutual fund that invests primarily in equities and equity-related products. They are a special category among mutual funds that qualify for tax deductions under Section 80C of the Income Tax Act, 1961.
Is ELSS and sip same?
ELSS is an investment vehicle in itself while SIP is not, it is instead a way of investing not only in ELSS but also in any other mutual fund. Therefore, ELSS cannot be compared with SIP as it’s not an apple to apple comparison.
Is ELSS and NPS same?
Unlike NPS, ELSS funds have a lower lock-in period of 3 years, and investment qualifies for tax deduction under 80C. NPS is more suitable for long term goals like retirement planning. Unlike ELSS, they tend to offer stable returns. However, the NPS scheme has a lock-in period until 60 years.
What is ELSS vs mutual fund?
An ELSS is also a mutual fund that offers tax deductions of up to Rs 1,50,000 a year under Section 80C of the Income Tax Act, 1961. The only difference between an ELSS and other mutual funds is that the later doesn’t offer tax benefits.
Is ELSS better than FD?
ELSS funds offer great tax benefits, and unlike FDs, the dividend earned on the investment will not be subject to tax deduction. Let us take a look at some of the key features of ELSS funds: ELSS funds have a comparatively shorter lock in period of 3 years, while tax saver FDs come with a lock-in period of 5 years.
Which mutual fund is ELSS?
Equity Hybrid Debt Solution Oriented Others Filter
Scheme Name | Plan | Category Name |
---|---|---|
LIC MF Tax Plan – Direct Plan – Growth | Direct Plan | ELSS |
Indiabulls Tax Savings Fund – Direct Plan – Growth | Direct Plan | ELSS |
SBI Long Term Equity Fund – Direct Plan – Growth | Direct Plan | ELSS |
Kotak Tax Saver Scheme – Direct Plan – Growth | Direct Plan | ELSS |
Which is better equity or ELSS?
As mentioned above, generally, ELSS Mutual funds tend to offer better returns than most of the equity funds. Therefore, even the investors who do not want to save tax can invest in ELSS Mutual Funds to create wealth over a long run.
Is ELSS better than equity?