Smart Tax Saving is to promote invest in ELSS fund. ELSS fund stands for (Equity Link Saving Scheme).It is one of the best tax saving option among all option available under Income tax Sec 80 C. It is pure equity based mutual fund and fund invests on predefined investment objective to generate higher return in longer term.
Feature of ELSS Fund
- There is no compulsion of investment in ELSS in subsequent years like Insurance policy has
- Shortest Lock-in period among all tax saving option (3 years Lock-in period from investment date)
- A couple of Varieties of funds to invest (Like Fund has biased of Large,Mid or Small company exposure)
- Its pure vanilla product easy to understand,
- Very easy to track the performance of fund on regular basis
- ELSS fund has both growth and dividend option to choose
- Anyone may Start investing as low as with Rs.100
Benefits of ELSS Fund
- Generate significant higher return compared to all option under income tax Sec 80 C
- One can invest as a lump-sum or one time at any point of time during financial year for which investor want to save tax.
- One May opt SIP ( Systematic Investment plan) route to invest on monthly basis
- A few funds has delivered more than 20% CAGR return in last 25 years
- Money has grown more than 7 time higher than Provident fund investment in last 25 years
- In Case of emergency investor may redeem investment after completing 3 years of investment
- Investing in ELSS fund investor money can grow along with India’s growth.
- ELSS provides benefit of Diversification of Companies & Sectors
- Professional Money Management with very low cost.
- Investor can link his/her financial goal like(Child education,Retirement planning e.t.c) via investing in ELSS fund