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
Investment will be well diversified in Equity & Debt Schemes, whereas Equity will give a push to appreciate capital and debt component will help downside in falling Equity Market.
Blend Portfolio of Equity & Debt
Risk adjusted return
Equity Exposure helps capital appreciation
Less Volatile compare to pure equity portfolio
Debt Part gives stability & fixed returns.
Medium term Goals for 5-7 Years like buying a car, vacation etc. can be planned with this approach.
Major portion of Investment will be in fixed income funds with little exposure to equity to generate Inflation adjusted Return.
Conservative approach has maximum part of portfolio into Fixed Income
Funds have tentatively 20% exposure in equity
1-3 % Higher returns compared to FD
Equity exposure in fund adds significant return in bull market
Fixed income provide stability & consistency to funds
Suitable time horizon for approach around 3-5 years and more