{"id":12947,"date":"2022-07-04T19:05:15","date_gmt":"2022-07-04T13:35:15","guid":{"rendered":"https:\/\/kuvera.in\/blog\/?p=12947"},"modified":"2022-07-14T16:25:21","modified_gmt":"2022-07-14T10:55:21","slug":"elss-mutual-fund-v-fixed-deposit","status":"publish","type":"post","link":"https:\/\/kuvera.in\/blog\/elss-mutual-fund-v-fixed-deposit\/","title":{"rendered":"ELSS Mutual Fund V. Fixed Deposit"},"content":{"rendered":"<div id=\"ez-toc-container\" class=\"ez-toc-v2_0_40 counter-hierarchy ez-toc-counter ez-toc-light-blue ez-toc-container-direction\">\n<div class=\"ez-toc-title-container\">\n<p class=\"ez-toc-title\">Table of Contents<\/p>\n<span class=\"ez-toc-title-toggle\"><a href=\"#\" class=\"ez-toc-pull-right ez-toc-btn ez-toc-btn-xs ez-toc-btn-default ez-toc-toggle\" area-label=\"ez-toc-toggle-icon-1\"><label for=\"item-69d172332df74\" aria-label=\"Table of Content\"><span style=\"display: flex;align-items: center;width: 35px;height: 30px;justify-content: center;direction:ltr;\"><svg style=\"fill: #999;color:#999\" xmlns=\"http:\/\/www.w3.org\/2000\/svg\" class=\"list-377408\" width=\"20px\" height=\"20px\" viewBox=\"0 0 24 24\" fill=\"none\"><path d=\"M6 6H4v2h2V6zm14 0H8v2h12V6zM4 11h2v2H4v-2zm16 0H8v2h12v-2zM4 16h2v2H4v-2zm16 0H8v2h12v-2z\" fill=\"currentColor\"><\/path><\/svg><svg style=\"fill: #999;color:#999\" class=\"arrow-unsorted-368013\" xmlns=\"http:\/\/www.w3.org\/2000\/svg\" width=\"10px\" height=\"10px\" viewBox=\"0 0 24 24\" version=\"1.2\" baseProfile=\"tiny\"><path d=\"M18.2 9.3l-6.2-6.3-6.2 6.3c-.2.2-.3.4-.3.7s.1.5.3.7c.2.2.4.3.7.3h11c.3 0 .5-.1.7-.3.2-.2.3-.5.3-.7s-.1-.5-.3-.7zM5.8 14.7l6.2 6.3 6.2-6.3c.2-.2.3-.5.3-.7s-.1-.5-.3-.7c-.2-.2-.4-.3-.7-.3h-11c-.3 0-.5.1-.7.3-.2.2-.3.5-.3.7s.1.5.3.7z\"\/><\/svg><\/span><\/label><input  type=\"checkbox\" id=\"item-69d172332df74\"><\/a><\/span><\/div>\n<nav><ul class='ez-toc-list ez-toc-list-level-1 ' ><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-1\" href=\"https:\/\/kuvera.in\/blog\/elss-mutual-fund-v-fixed-deposit\/#How_Does_An_ELSS_Funds_Work\" title=\"How Does An ELSS Funds Work?\">How Does An ELSS Funds Work?<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-2\" href=\"https:\/\/kuvera.in\/blog\/elss-mutual-fund-v-fixed-deposit\/#Benefits_Of_ELSS_Mutual_Funds\" title=\"Benefits Of ELSS Mutual Funds\">Benefits Of ELSS Mutual Funds<\/a><ul class='ez-toc-list-level-3'><li class='ez-toc-heading-level-3'><a class=\"ez-toc-link ez-toc-heading-3\" href=\"https:\/\/kuvera.in\/blog\/elss-mutual-fund-v-fixed-deposit\/#ELSS_Mutual_Funds_Offer_Tax_Benefits\" title=\"ELSS Mutual Funds Offer Tax Benefits\">ELSS Mutual Funds Offer Tax Benefits<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-3'><a class=\"ez-toc-link ez-toc-heading-4\" href=\"https:\/\/kuvera.in\/blog\/elss-mutual-fund-v-fixed-deposit\/#Lock-in_Period\" title=\"Lock-in Period\u00a0\">Lock-in Period\u00a0<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-3'><a class=\"ez-toc-link ez-toc-heading-5\" href=\"https:\/\/kuvera.in\/blog\/elss-mutual-fund-v-fixed-deposit\/#Lumpsum_or_SIP\" title=\"Lumpsum or SIP\">Lumpsum or SIP<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-3'><a class=\"ez-toc-link ez-toc-heading-6\" href=\"https:\/\/kuvera.in\/blog\/elss-mutual-fund-v-fixed-deposit\/#Significant_Equity_Investment\" title=\"Significant Equity Investment\">Significant Equity Investment<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-3'><a class=\"ez-toc-link ez-toc-heading-7\" href=\"https:\/\/kuvera.in\/blog\/elss-mutual-fund-v-fixed-deposit\/#Low_Tax\" title=\"Low Tax\">Low Tax<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-3'><a class=\"ez-toc-link ez-toc-heading-8\" href=\"https:\/\/kuvera.in\/blog\/elss-mutual-fund-v-fixed-deposit\/#Higher_Potential_Gains\" title=\"Higher Potential Gains\">Higher Potential Gains<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-3'><a class=\"ez-toc-link ez-toc-heading-9\" href=\"https:\/\/kuvera.in\/blog\/elss-mutual-fund-v-fixed-deposit\/#Theres_No_Maximum\" title=\"There&#8217;s No Maximum\">There&#8217;s No Maximum<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-3'><a class=\"ez-toc-link ez-toc-heading-10\" href=\"https:\/\/kuvera.in\/blog\/elss-mutual-fund-v-fixed-deposit\/#Skilled_Management\" title=\"Skilled Management\">Skilled Management<\/a><\/li><\/ul><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-11\" href=\"https:\/\/kuvera.in\/blog\/elss-mutual-fund-v-fixed-deposit\/#How_Can_I_Invest_In_ELSS_Mutual_Funds\" title=\"How Can I Invest In ELSS Mutual Funds?\">How Can I Invest In ELSS Mutual Funds?<\/a><ul class='ez-toc-list-level-3'><li class='ez-toc-heading-level-3'><a class=\"ez-toc-link ez-toc-heading-12\" href=\"https:\/\/kuvera.in\/blog\/elss-mutual-fund-v-fixed-deposit\/#Choosing_a_Tax-Saving_Scheme\" title=\"Choosing a Tax-Saving Scheme\">Choosing a Tax-Saving Scheme<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-3'><a class=\"ez-toc-link ez-toc-heading-13\" href=\"https:\/\/kuvera.in\/blog\/elss-mutual-fund-v-fixed-deposit\/#Regular_Mutual_Fund_or_Direct_Mutual_Fund\" title=\"Regular Mutual Fund or Direct Mutual Fund?\">Regular Mutual Fund or Direct Mutual Fund?<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-3'><a class=\"ez-toc-link ez-toc-heading-14\" href=\"https:\/\/kuvera.in\/blog\/elss-mutual-fund-v-fixed-deposit\/#Establish_A_Bank_Account\" title=\"Establish A Bank Account?\">Establish A Bank Account?<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-3'><a class=\"ez-toc-link ez-toc-heading-15\" href=\"https:\/\/kuvera.in\/blog\/elss-mutual-fund-v-fixed-deposit\/#Choose_An_Appropriate_Platform\" title=\"Choose An Appropriate Platform\">Choose An Appropriate Platform<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-3'><a class=\"ez-toc-link ez-toc-heading-16\" href=\"https:\/\/kuvera.in\/blog\/elss-mutual-fund-v-fixed-deposit\/#Look_For_Online_Investment_Option\" title=\"Look For Online Investment Option\">Look For Online Investment Option<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-3'><a class=\"ez-toc-link ez-toc-heading-17\" href=\"https:\/\/kuvera.in\/blog\/elss-mutual-fund-v-fixed-deposit\/#SIP_or_Lumpsum\" title=\"SIP or Lumpsum\u00a0\">SIP or Lumpsum\u00a0<\/a><\/li><\/ul><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-18\" href=\"https:\/\/kuvera.in\/blog\/elss-mutual-fund-v-fixed-deposit\/#How_Should_I_Select_ELSS_Mutual_Funds\" title=\"How Should I Select ELSS Mutual Funds?\">How Should I Select ELSS Mutual Funds?<\/a><ul class='ez-toc-list-level-3'><li class='ez-toc-heading-level-3'><a class=\"ez-toc-link ez-toc-heading-19\" href=\"https:\/\/kuvera.in\/blog\/elss-mutual-fund-v-fixed-deposit\/#The_Funds_Performance_To_Start\" title=\"The Fund&#8217;s Performance, To Start\">The Fund&#8217;s Performance, To Start<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-3'><a class=\"ez-toc-link ez-toc-heading-20\" href=\"https:\/\/kuvera.in\/blog\/elss-mutual-fund-v-fixed-deposit\/#Fund_Background\" title=\"Fund Background\">Fund Background<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-3'><a class=\"ez-toc-link ez-toc-heading-21\" href=\"https:\/\/kuvera.in\/blog\/elss-mutual-fund-v-fixed-deposit\/#Expense_To_Revenue\" title=\"Expense To Revenue\">Expense To Revenue<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-3'><a class=\"ez-toc-link ez-toc-heading-22\" href=\"https:\/\/kuvera.in\/blog\/elss-mutual-fund-v-fixed-deposit\/#The_Taxation_Of_the_Mutual_Fund\" title=\"The Taxation Of the Mutual Fund\">The Taxation Of the Mutual Fund<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-3'><a class=\"ez-toc-link ez-toc-heading-23\" href=\"https:\/\/kuvera.in\/blog\/elss-mutual-fund-v-fixed-deposit\/#Sharpe_Ratio\" title=\"Sharpe Ratio\">Sharpe Ratio<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-3'><a class=\"ez-toc-link ez-toc-heading-24\" href=\"https:\/\/kuvera.in\/blog\/elss-mutual-fund-v-fixed-deposit\/#Regular_Deviation\" title=\"Regular Deviation\">Regular Deviation<\/a><\/li><\/ul><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-25\" href=\"https:\/\/kuvera.in\/blog\/elss-mutual-fund-v-fixed-deposit\/#Top_ELSS_Mutual_Funds_-_2022\" title=\"Top ELSS Mutual Funds &#8211; 2022\u00a0\">Top ELSS Mutual Funds &#8211; 2022\u00a0<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-26\" href=\"https:\/\/kuvera.in\/blog\/elss-mutual-fund-v-fixed-deposit\/#ELSS_Mutual_Fund_Checklist\" title=\"ELSS Mutual Fund Checklist\">ELSS Mutual Fund Checklist<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-27\" href=\"https:\/\/kuvera.in\/blog\/elss-mutual-fund-v-fixed-deposit\/#What_is_a_Fixed_Deposit\" title=\"What is a Fixed Deposit\">What is a Fixed Deposit<\/a><ul class='ez-toc-list-level-3'><li class='ez-toc-heading-level-3'><a class=\"ez-toc-link ez-toc-heading-28\" href=\"https:\/\/kuvera.in\/blog\/elss-mutual-fund-v-fixed-deposit\/#Characteristics_of_Fixed_Deposits\" title=\"Characteristics of Fixed Deposits:\">Characteristics of Fixed Deposits:<\/a><ul class='ez-toc-list-level-4'><li class='ez-toc-heading-level-4'><a class=\"ez-toc-link ez-toc-heading-29\" href=\"https:\/\/kuvera.in\/blog\/elss-mutual-fund-v-fixed-deposit\/#Tenure\" title=\" Tenure\"> Tenure<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-4'><a class=\"ez-toc-link ez-toc-heading-30\" href=\"https:\/\/kuvera.in\/blog\/elss-mutual-fund-v-fixed-deposit\/#Secure_investment_options\" title=\" Secure investment options\"> Secure investment options<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-4'><a class=\"ez-toc-link ez-toc-heading-31\" href=\"https:\/\/kuvera.in\/blog\/elss-mutual-fund-v-fixed-deposit\/#Payments\" title=\" Payments\"> Payments<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-4'><a class=\"ez-toc-link ez-toc-heading-32\" href=\"https:\/\/kuvera.in\/blog\/elss-mutual-fund-v-fixed-deposit\/#An_untimely_or_partial_withdrawal\" title=\" An untimely or partial withdrawal\"> An untimely or partial withdrawal<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-4'><a class=\"ez-toc-link ez-toc-heading-33\" href=\"https:\/\/kuvera.in\/blog\/elss-mutual-fund-v-fixed-deposit\/#Tax_Advantages\" title=\" Tax Advantages\"> Tax Advantages<\/a><\/li><\/ul><\/li><\/ul><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-34\" href=\"https:\/\/kuvera.in\/blog\/elss-mutual-fund-v-fixed-deposit\/#ELSS_v_Fixed_Deposit_FD\" title=\"ELSS v. Fixed Deposit (FD)\">ELSS v. Fixed Deposit (FD)<\/a><ul class='ez-toc-list-level-3'><li class='ez-toc-heading-level-3'><a class=\"ez-toc-link ez-toc-heading-35\" href=\"https:\/\/kuvera.in\/blog\/elss-mutual-fund-v-fixed-deposit\/#Should_I_Invest_in_ELSS_Mutual_Funds\" title=\"Should I Invest in ELSS Mutual Funds?\">Should I Invest in ELSS Mutual Funds?<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-3'><a class=\"ez-toc-link ez-toc-heading-36\" href=\"https:\/\/kuvera.in\/blog\/elss-mutual-fund-v-fixed-deposit\/#How_to_book_an_FD_on_Kuvera\" title=\"How to book an FD on Kuvera?\">How to book an FD on Kuvera?<\/a><ul class='ez-toc-list-level-4'><li class='ez-toc-heading-level-4'><a class=\"ez-toc-link ez-toc-heading-37\" href=\"https:\/\/kuvera.in\/blog\/elss-mutual-fund-v-fixed-deposit\/#Interested_in_how_we_think_about_the_markets\" title=\"Interested in how we think about the markets?\">Interested in how we think about the markets?<\/a><\/li><\/ul><\/li><\/ul><\/li><\/ul><\/nav><\/div>\n<p><span style=\"font-weight: 400;\">One of the best investment options for tax savings is an equity-linked saving scheme (<\/span><b>ELSS<\/b><span style=\"font-weight: 400;\">) mutual fund. As they invest 80% of their assets in equities, they fall under the category of <a href=\"https:\/\/kuvera.in\/explore\/mf\/c\/all\/equity\">equity mutual funds<\/a> as opposed to debt mutual funds. Section 80C of the Income Tax Act of 1961 allows for a tax exemption of 1.5 lakh INR for investments made in ELSS mutual funds&#8230;<\/span><\/p>\n<p>&nbsp;<\/p>\n<p>&nbsp;<\/p>\n<p><a href=\"https:\/\/kuvera.in\/explore\/fixed-deposit\/c\/all\"><img loading=\"lazy\" class=\"size-large wp-image-13417 aligncenter\" src=\"https:\/\/kuvera.in\/blog\/wp-content\/uploads\/2022\/07\/FD-Banner_14-July-2022-1024x334.jpg\" sizes=\"(max-width: 640px) 100vw, 640px\" srcset=\"https:\/\/kuvera.in\/blog\/wp-content\/uploads\/2022\/07\/FD-Banner_14-July-2022-1024x334.jpg 1024w, https:\/\/kuvera.in\/blog\/wp-content\/uploads\/2022\/07\/FD-Banner_14-July-2022-300x98.jpg 300w, https:\/\/kuvera.in\/blog\/wp-content\/uploads\/2022\/07\/FD-Banner_14-July-2022-768x250.jpg 768w, https:\/\/kuvera.in\/blog\/wp-content\/uploads\/2022\/07\/FD-Banner_14-July-2022.jpg 1080w\" alt=\"Online Fixed Deposits on Kuvera\" width=\"640\" height=\"209\" \/><\/a><\/p>\n<p>&nbsp;<\/p>\n<p>&nbsp;<\/p>\n<h2><span class=\"ez-toc-section\" id=\"How_Does_An_ELSS_Funds_Work\"><\/span>How Does An ELSS Funds Work?<span class=\"ez-toc-section-end\"><\/span><\/h2>\n<p>&nbsp;<\/p>\n<p><span style=\"font-weight: 400;\">The best mutual funds for tax savings are equity-linked savings schemes and <a href=\"https:\/\/kuvera.in\/explore\/mf\/c\/all\">mutual funds<\/a>. A portion of the corpus of ELSS mutual fund may be invested in debt, however, at least 80% of its corpus is invested in equity securities. <\/span><\/p>\n<p>&nbsp;<\/p>\n<p><span style=\"font-weight: 400;\">For their investors, ELSS funds offer both capital growth and tax savings. Three years is the lock-in period for ELSS mutual funds. Section 80C of the Income Tax Act of 1961 allows investors to deduct up to Rs. 1.5 lakh in taxes per fiscal year.<\/span><\/p>\n<p>&nbsp;<\/p>\n<p>&nbsp;<\/p>\n<h2><span class=\"ez-toc-section\" id=\"Benefits_Of_ELSS_Mutual_Funds\"><\/span>Benefits Of ELSS Mutual Funds<span class=\"ez-toc-section-end\"><\/span><\/h2>\n<p>&nbsp;<\/p>\n<ul>\n<li style=\"font-weight: 400;\" aria-level=\"1\">\n<h3><span class=\"ez-toc-section\" id=\"ELSS_Mutual_Funds_Offer_Tax_Benefits\"><\/span><span style=\"font-weight: 400;\">ELSS Mutual Funds Offer Tax Benefits<\/span><span class=\"ez-toc-section-end\"><\/span><\/h3>\n<\/li>\n<\/ul>\n<p>&nbsp;<\/p>\n<p><span style=\"font-weight: 400;\">The main factor making ELSS a fantastic investment option is tax savings. Under Section 80C of the Income Tax Act of 1961, investments in ELSS up to Rs. 1.5 lakh per year are eligible for a tax deduction.<\/span><\/p>\n<p>&nbsp;<\/p>\n<p><span style=\"font-weight: 400;\">However, please note there is no maximum investment limit associated with <a href=\"https:\/\/kuvera.in\/explore\/mf\/c\/all\/equity\/elss\">ELSS mutual funds<\/a> because you are free to deposit whatever amount. However, beyond Rs. 1.5 lakhs in investment, there are no tax advantages.<\/span><\/p>\n<p>&nbsp;<\/p>\n<ul>\n<li style=\"font-weight: 400;\" aria-level=\"1\">\n<h3><span class=\"ez-toc-section\" id=\"Lock-in_Period\"><\/span><span style=\"font-weight: 400;\">Lock-in Period\u00a0<\/span><span class=\"ez-toc-section-end\"><\/span><\/h3>\n<\/li>\n<\/ul>\n<p>&nbsp;<\/p>\n<p><span style=\"font-weight: 400;\">The 3 year <a href=\"https:\/\/kuvera.in\/blog\/lock-in-period-of-elss-funds\/\">lock-in period for the ELSS investment<\/a> is enshrined in law. The lock-in period reduces initial equity investment volatility and promotes the reinvestment of earnings.<\/span><\/p>\n<p>&nbsp;<\/p>\n<p><span style=\"font-weight: 400;\">You should be aware, that the lock-in period begins on the day of purchase. For instance, if you deposit one lakh rupees all at once and receive 100 units on Jan 1, 2022, only on Jan 1, 2025, the lock-in period will end.<\/span><\/p>\n<p>&nbsp;<\/p>\n<p><span style=\"font-weight: 400;\">However, if you make monthly SIP investments, such as 10 units on Jan 1, 2022, 10 units on Feb 2, 2022, and so on. The lock-in term will thereafter end on Jan 1, 2025, for the first 10 units, Feb 1, 2025, for the second 10 units, and so on.<\/span><\/p>\n<p>&nbsp;<\/p>\n<ul>\n<li style=\"font-weight: 400;\" aria-level=\"1\">\n<h3><span class=\"ez-toc-section\" id=\"Lumpsum_or_SIP\"><\/span><span style=\"font-weight: 400;\">Lumpsum or SIP<\/span><span class=\"ez-toc-section-end\"><\/span><\/h3>\n<\/li>\n<\/ul>\n<p>&nbsp;<\/p>\n<p><span style=\"font-weight: 400;\">Two ways exist for investing in ELSS. If you receive a steady paycheck, you can use a SIP to invest each month. In the alternative, if you have extra money, you can invest it all at once in ELSS.<\/span><\/p>\n<p>&nbsp;<\/p>\n<p><span style=\"font-weight: 400;\">With a SIP, you can invest as little as Rs. 100 each month in ELSS. You can compare SIP with the lumpsum investment option and thereafter decide.\u00a0<\/span><\/p>\n<p>&nbsp;<\/p>\n<ul>\n<li style=\"font-weight: 400;\" aria-level=\"1\">\n<h3><span class=\"ez-toc-section\" id=\"Significant_Equity_Investment\"><\/span><span style=\"font-weight: 400;\">Significant Equity Investment<\/span><span class=\"ez-toc-section-end\"><\/span><\/h3>\n<\/li>\n<\/ul>\n<p>&nbsp;<\/p>\n<p><span style=\"font-weight: 400;\">The ELSS mutual funds are invested primarily in equities and equity-related securities in order to generate gains (up to 80%). Equities are riskier than debt, bonds, or money market securities like certificates of deposit (CDs), treasury bills, and money market funds.<\/span><\/p>\n<p>&nbsp;<\/p>\n<p><span style=\"font-weight: 400;\">Before making an equity investment, you should also evaluate your risk tolerance. Over time, ELSS mutual funds have provided better returns historically than fixed deposits, although they can be volatile in the short term.<\/span><\/p>\n<p>&nbsp;<\/p>\n<p><span style=\"font-weight: 400;\">Top 5 ELSS mutual funds have offered returns of 12 per cent (CAGR) in the past 5 years which is better than returns offered by fixed return schemes like PPF.<\/span><\/p>\n<p>&nbsp;<\/p>\n<ul>\n<li style=\"font-weight: 400;\" aria-level=\"1\">\n<h3><span class=\"ez-toc-section\" id=\"Low_Tax\"><\/span><span style=\"font-weight: 400;\">Low Tax<\/span><span class=\"ez-toc-section-end\"><\/span><\/h3>\n<\/li>\n<\/ul>\n<p>&nbsp;<\/p>\n<p><span style=\"font-weight: 400;\">Not all ELSS investment gains are exempt from taxes. The capital gains from ELSS investments held for a period of three years or more are considered long-term capital gains (LTCG), and any capital gains over Rs. 1 lakh are subject to a 10% capital gains tax.<\/span><\/p>\n<p>&nbsp;<\/p>\n<ul>\n<li style=\"font-weight: 400;\" aria-level=\"1\">\n<h3><span class=\"ez-toc-section\" id=\"Higher_Potential_Gains\"><\/span><span style=\"font-weight: 400;\">Higher Potential Gains<\/span><span class=\"ez-toc-section-end\"><\/span><\/h3>\n<\/li>\n<\/ul>\n<p>&nbsp;<\/p>\n<p><span style=\"font-weight: 400;\">Compared to other tax-saving investments like PPF, top ELSS funds have the potential to produce larger returns, as has the case been, historically if we compare the top 5 ELSS mutual funds basis their 5-year CAGR with PPF and NPS. The risk that the fund houses took while investing was investing heavily in equities and that is what led to these tremendous returns. Some ELSS funds invest in mid-cap companies, when compared to ELSS mutual funds that primarily invest in large-cap companies, these funds can produce larger returns potentially since historically mid-cap companies have grown at a pace higher than that of large-cap.\u00a0<\/span><\/p>\n<p>&nbsp;<\/p>\n<ul>\n<li style=\"font-weight: 400;\" aria-level=\"1\">\n<h3><span class=\"ez-toc-section\" id=\"Theres_No_Maximum\"><\/span><span style=\"font-weight: 400;\">There&#8217;s No Maximum<\/span><span class=\"ez-toc-section-end\"><\/span><\/h3>\n<\/li>\n<\/ul>\n<p>&nbsp;<\/p>\n<p><span style=\"font-weight: 400;\">The amount that an investor can put into ELSS funds has no upper limit.<\/span><\/p>\n<p>&nbsp;<\/p>\n<ul>\n<li style=\"font-weight: 400;\" aria-level=\"1\">\n<h3><span class=\"ez-toc-section\" id=\"Skilled_Management\"><\/span><span style=\"font-weight: 400;\">Skilled Management<\/span><span class=\"ez-toc-section-end\"><\/span><\/h3>\n<\/li>\n<\/ul>\n<p>&nbsp;<\/p>\n<p><span style=\"font-weight: 400;\">ELSS mutual funds are managed by qualified fund managers. As a result, even an investor with limited or no market understanding can have his\/her money professionally managed by investing in the ELSS mutual funds. In comparison to other conventional tax-saving strategies, professional management aids investors in obtaining larger profits.<\/span><\/p>\n<p>&nbsp;<\/p>\n<p>&nbsp;<\/p>\n<h2><span class=\"ez-toc-section\" id=\"How_Can_I_Invest_In_ELSS_Mutual_Funds\"><\/span>How Can I Invest In ELSS Mutual Funds?<span class=\"ez-toc-section-end\"><\/span><\/h2>\n<p>&nbsp;<\/p>\n<ul>\n<li aria-level=\"1\">\n<h3><span class=\"ez-toc-section\" id=\"Choosing_a_Tax-Saving_Scheme\"><\/span>Choosing a Tax-Saving Scheme<span class=\"ez-toc-section-end\"><\/span><\/h3>\n<\/li>\n<\/ul>\n<p>&nbsp;<\/p>\n<p><span style=\"font-weight: 400;\">Mutual fund schemes provide varying results. For example, as on 1 July the <a href=\"https:\/\/kuvera.in\/explore\/mf\/l\/parag-parikh-tax-saver-growth--PPTSFGZ-GR\">Parag Parikh Tax Saver Fund<\/a> gave a return of 10.49 per cent whereas <a href=\"https:\/\/kuvera.in\/explore\/mf\/l\/idfc-tax-advantage-growth--D223-GR\">IDFC Tax Advantage (ELSS) Fund<\/a> gave for the same period gave a return of 3.22%. The top mutual funds are quite difficult to anticipate when these numbers are taken into account. However, there is a good possibility that the mutual fund with the highest return last year has good management and investment strategy.\u00a0<\/span><\/p>\n<p>&nbsp;<\/p>\n<ul>\n<li aria-level=\"1\">\n<h3><span class=\"ez-toc-section\" id=\"Regular_Mutual_Fund_or_Direct_Mutual_Fund\"><\/span>Regular Mutual Fund or Direct Mutual Fund?<span class=\"ez-toc-section-end\"><\/span><\/h3>\n<\/li>\n<\/ul>\n<p>&nbsp;<\/p>\n<p><span style=\"font-weight: 400;\">The regular scheme and direct scheme are the two schemes available to any investor when investing in ELSS mutual funds. Due to payments made to those that distribute mutual funds, the regular schemes\u2019 expense ratio is significantly higher than that of the direct schemes.<\/span><\/p>\n<p>&nbsp;<\/p>\n<p><span style=\"font-weight: 400;\"> The main distinction between the plans is that they will each have a different NAV. When weighed against one another, one should choose the direct plan.<\/span><\/p>\n<p>&nbsp;<\/p>\n<ul>\n<li style=\"font-weight: 400;\" aria-level=\"1\">\n<h3><span class=\"ez-toc-section\" id=\"Establish_A_Bank_Account\"><\/span><span style=\"font-weight: 400;\">Establish A Bank Account?<\/span><span class=\"ez-toc-section-end\"><\/span><\/h3>\n<\/li>\n<\/ul>\n<p>&nbsp;<\/p>\n<p><span style=\"font-weight: 400;\">All of this is only possible if you have a working bank account, as this is where all of your funds will be taken out for investments and dividends credited.<\/span><\/p>\n<p>&nbsp;<\/p>\n<ul>\n<li style=\"font-weight: 400;\" aria-level=\"1\">\n<h3><span class=\"ez-toc-section\" id=\"Choose_An_Appropriate_Platform\"><\/span><span style=\"font-weight: 400;\">Choose An Appropriate Platform<\/span><span class=\"ez-toc-section-end\"><\/span><\/h3>\n<\/li>\n<\/ul>\n<p>&nbsp;<\/p>\n<p><span style=\"font-weight: 400;\">When choosing an intermediary in order to invest in the mutual fund make sure the platform\/app you choose offers only a direct mutual funds. Kuvera is India\u2019s leading mutual fund investment app which offers only direct mutual funds.\u00a0<\/span><\/p>\n<p>&nbsp;<\/p>\n<ul>\n<li style=\"font-weight: 400;\" aria-level=\"1\">\n<h3><span class=\"ez-toc-section\" id=\"Look_For_Online_Investment_Option\"><\/span><span style=\"font-weight: 400;\">Look For Online Investment Option<\/span><span class=\"ez-toc-section-end\"><\/span><\/h3>\n<\/li>\n<\/ul>\n<p>&nbsp;<\/p>\n<p><span style=\"font-weight: 400;\">Online ELSS investments are simple, paperless, and convenient. It saves you from unnecessary paperwork and saves the environment too.\u00a0<\/span><\/p>\n<p>&nbsp;<\/p>\n<ul>\n<li style=\"font-weight: 400;\" aria-level=\"1\">\n<h3><span class=\"ez-toc-section\" id=\"SIP_or_Lumpsum\"><\/span><span style=\"font-weight: 400;\">SIP or Lumpsum\u00a0<\/span><span class=\"ez-toc-section-end\"><\/span><\/h3>\n<\/li>\n<\/ul>\n<p>&nbsp;<\/p>\n<p><span style=\"font-weight: 400;\">After selecting the ELSS fund type, the investor can make investments through <a href=\"https:\/\/kuvera.in\/blog\/sip-vs-lumpsum\/\">SIPs or a single lumpsum investment<\/a>. Minor investors who want to make frequent, small investments to reduce their tax burden might consider ELSS mutual funds. However, if a buyer has a lump sum amount ready, they can also put all of it into the best ELSS funds.<\/span><\/p>\n<p>&nbsp;<\/p>\n<h2><span class=\"ez-toc-section\" id=\"How_Should_I_Select_ELSS_Mutual_Funds\"><\/span>How Should I Select ELSS Mutual Funds?<span class=\"ez-toc-section-end\"><\/span><\/h2>\n<p>&nbsp;<\/p>\n<p><span style=\"font-weight: 400;\">It&#8217;s crucial to assess a mutual fund before investing. Since no two investors are exactly alike, no two investors can be served by the same fund. However, there are particular guidelines that all investors can use to assess mutual funds before making an investment in them. A few suggestions for investors are provided below.<\/span><\/p>\n<p>&nbsp;<\/p>\n<ul>\n<li style=\"font-weight: 400;\" aria-level=\"1\">\n<h3><span class=\"ez-toc-section\" id=\"The_Funds_Performance_To_Start\"><\/span><span style=\"font-weight: 400;\">The Fund&#8217;s Performance, To Start<\/span><span class=\"ez-toc-section-end\"><\/span><\/h3>\n<\/li>\n<\/ul>\n<p>&nbsp;<\/p>\n<p><span style=\"font-weight: 400;\">Any investor will look at the fund&#8217;s performance first. While checking the performance of the fund, the current performance and the prior performance has to be checked. Additionally, its consistency must be examined. Investors must contrast the performance of the fund with that of the benchmark. The better a fund is, the more consistently it performs.<\/span><\/p>\n<p>&nbsp;<\/p>\n<ul>\n<li style=\"font-weight: 400;\" aria-level=\"1\">\n<h3><span class=\"ez-toc-section\" id=\"Fund_Background\"><\/span><span style=\"font-weight: 400;\">Fund Background<\/span><span class=\"ez-toc-section-end\"><\/span><\/h3>\n<\/li>\n<\/ul>\n<p>&nbsp;<\/p>\n<p><span style=\"font-weight: 400;\">Investors must investigate the fund house, its governance, and its level of experience. The fund manager will be more adept at managing the portfolio of the fund in all circumstances the older the fund house and the more experience they have.<\/span><\/p>\n<p>&nbsp;<\/p>\n<ul>\n<li style=\"font-weight: 400;\" aria-level=\"1\">\n<h3><span class=\"ez-toc-section\" id=\"Expense_To_Revenue\"><\/span><span style=\"font-weight: 400;\">Expense To Revenue<\/span><span class=\"ez-toc-section-end\"><\/span><\/h3>\n<\/li>\n<\/ul>\n<p>&nbsp;<\/p>\n<p><span style=\"font-weight: 400;\">The price an investor pays to invest in mutual funds is known as the expense ratio. It is determined as a portion of the NAV. Investors must therefore ensure that the fund has a low expense ratio. The returns will be higher the lower the expense ratio.<\/span><\/p>\n<p>&nbsp;<\/p>\n<ul>\n<li style=\"font-weight: 400;\" aria-level=\"1\">\n<h3><span class=\"ez-toc-section\" id=\"The_Taxation_Of_the_Mutual_Fund\"><\/span><span style=\"font-weight: 400;\">The Taxation Of the Mutual Fund<\/span><span class=\"ez-toc-section-end\"><\/span><\/h3>\n<\/li>\n<\/ul>\n<p>&nbsp;<\/p>\n<p><span style=\"font-weight: 400;\">The fund&#8217;s tax regulations at maturity are crucial. Investors need to be aware of both the short- and long-term tax repercussions of redeeming their investment.<\/span><\/p>\n<p>&nbsp;<\/p>\n<ul>\n<li style=\"font-weight: 400;\" aria-level=\"1\">\n<h3><span class=\"ez-toc-section\" id=\"Sharpe_Ratio\"><\/span><span style=\"font-weight: 400;\">Sharpe Ratio<\/span><span class=\"ez-toc-section-end\"><\/span><\/h3>\n<\/li>\n<\/ul>\n<p>&nbsp;<\/p>\n<p><span style=\"font-weight: 400;\">The Sharpe ratio compared the fund&#8217;s return to its risk. Therefore, the better the fund, the larger the ratio. Sharpe ratio is calculated as follows:<\/span><\/p>\n<p>&nbsp;<\/p>\n<pre><span style=\"font-weight: 400;\"> Sharpe ratio = (Average Portfolio Return Risk-Free Rate)\/Position Standard Deviation<\/span><\/pre>\n<p>&nbsp;<\/p>\n<ul>\n<li style=\"font-weight: 400;\" aria-level=\"1\">\n<h3><span class=\"ez-toc-section\" id=\"Regular_Deviation\"><\/span><span style=\"font-weight: 400;\">Regular Deviation<\/span><span class=\"ez-toc-section-end\"><\/span><\/h3>\n<\/li>\n<\/ul>\n<p>&nbsp;<\/p>\n<p><span style=\"font-weight: 400;\">By calculating how much the fund&#8217;s return changes around the average return, the standard deviation of the fund reveals the performance volatility of a fund. Better is a lower standard deviation.<\/span><\/p>\n<p>&nbsp;<\/p>\n<h2><span class=\"ez-toc-section\" id=\"Top_ELSS_Mutual_Funds_-_2022\"><\/span><span style=\"font-weight: 400;\">Top ELSS Mutual Funds &#8211; 2022\u00a0<\/span><span class=\"ez-toc-section-end\"><\/span><\/h2>\n<p>&nbsp;<\/p>\n<p><span style=\"font-weight: 400;\">Basis the past 5-year performance in terms of CAGR following are the top ELSS Mutual Funds of 2022, arranged in order of highest to lowest return:\u00a0<\/span><\/p>\n<p>&nbsp;<\/p>\n<ul>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><span style=\"font-weight: 400;\"><a href=\"https:\/\/kuvera.in\/explore\/mf\/l\/quant-tax-growth--QUTPDG-GR\">Quant Tax Plan<\/a>:\u00a0 18.95% CAGR<\/span><\/li>\n<\/ul>\n<p>&nbsp;<\/p>\n<ul>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><span style=\"font-weight: 400;\"><a href=\"https:\/\/kuvera.in\/explore\/mf\/l\/mirae-asset-tax-saver-growth--MATSD1-GR\">Mirae Asset Tax Saver Fund<\/a>: 15.52% CAGR<\/span><\/li>\n<\/ul>\n<p>&nbsp;<\/p>\n<ul>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><span style=\"font-weight: 400;\"><a href=\"https:\/\/kuvera.in\/explore\/mf\/l\/canara-robeco-equity-tax-saver-growth--CAETDG-GR\">Canara Robeco Equity Tax Saver Fund<\/a>: 14.83%\u00a0<\/span><\/li>\n<\/ul>\n<p>&nbsp;<\/p>\n<ul>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><span style=\"font-weight: 400;\"><a href=\"https:\/\/kuvera.in\/explore\/mf\/l\/boi-axa-tax-advantage-growth--BXBA079-GR\">Bank of India Tax Advantage Fund<\/a>: 14.83%<\/span><\/li>\n<\/ul>\n<p>&nbsp;<\/p>\n<ul>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><span style=\"font-weight: 400;\"><a href=\"https:\/\/kuvera.in\/explore\/mf\/l\/idfc-tax-advantage-growth--D223-GR\">IDFC Tax Advantage (ELSS) Fund<\/a>: 13.33%<\/span><\/li>\n<\/ul>\n<p>&nbsp;<\/p>\n<p><b>Is the ELSS maturity amount tax-deductible?<\/b><\/p>\n<p>&nbsp;<\/p>\n<p><span style=\"font-weight: 400;\">The amount invested in the ELSS mutual fund is tax-exempt under Section 80C of the Income Tax Act, up to an amount of 1.5 Lakh. However, the gains made on the investment are taxable. ELSS mutual funds are categorized as equity funds and are taxed accordingly. Long-term capital gains (LTCG) is 10% for equity funds.<\/span><\/p>\n<p>&nbsp;<\/p>\n<p><span style=\"font-weight: 400;\"> Since one cannot sell an ELSS mutual fund before 1 year, short-term capital gains tax is irrelevant for the purposes of an ELSS mutual fund. As a result, after the lock-in period is up and the units are redeemed, any gains (if any) over Rs. 1 lakh are subject to a 10% LTCG tax. Additionally, even after a 3-year lock-in period, the investor may continue to maintain the investment in ELSS funds.<\/span><\/p>\n<p>&nbsp;<\/p>\n<p>&nbsp;<\/p>\n<h2><span class=\"ez-toc-section\" id=\"ELSS_Mutual_Fund_Checklist\"><\/span>ELSS Mutual Fund Checklist<span class=\"ez-toc-section-end\"><\/span><\/h2>\n<p>&nbsp;<\/p>\n<ul>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><span style=\"font-weight: 400;\">The consistency of the fund&#8217;s performance, both in the present and in the past, must be examined. They ought to contrast the fund&#8217;s performance with its benchmark as well.<\/span><\/li>\n<\/ul>\n<p>&nbsp;<\/p>\n<ul>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><span style=\"font-weight: 400;\">Investors should also look into the fund&#8217;s history, including the fund house, its governance, and the fund manager&#8217;s level of experience.<\/span><\/li>\n<\/ul>\n<p>&nbsp;<\/p>\n<ul>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><span style=\"font-weight: 400;\">The expense ratio, or the cost associated with investing in mutual funds, is something else that investors should look into.<\/span><\/li>\n<\/ul>\n<p>&nbsp;<\/p>\n<ul>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><span style=\"font-weight: 400;\">Sharpe Ratio, Standard Deviation, Beta, Alpha, and R-Squared are examples of ratios that relate to risk and return.<\/span><\/li>\n<\/ul>\n<p>&nbsp;<\/p>\n<ul>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><span style=\"font-weight: 400;\">Investors can therefore assess the aforementioned factors while selecting an ELSS fund. Before making an investment decision, one should take their financial objectives, tax liability, level of risk tolerance, and investment horizon into account.<\/span><\/li>\n<\/ul>\n<p>&nbsp;<\/p>\n<h2><span class=\"ez-toc-section\" id=\"What_is_a_Fixed_Deposit\"><\/span>What is a Fixed Deposit<span class=\"ez-toc-section-end\"><\/span><\/h2>\n<p>&nbsp;<\/p>\n<p><span style=\"font-weight: 400;\">Banks, post offices, businesses, and other institutions offer <a href=\"https:\/\/kuvera.in\/explore\/fixed-deposit\/c\/all\">fixed deposits<\/a> (FDs), which are term deposits. These deposits are one of the most secure investing options. Additionally, they are reputed to provide greater returns or interest than a savings account. <\/span><\/p>\n<p>&nbsp;<\/p>\n<p><span style=\"font-weight: 400;\">However, not all fixed deposits are risk-free; for instance, corporate fixed deposits are riskier than bank FDs, therefore investors should exercise caution when purchasing them.<\/span><\/p>\n<p>&nbsp;<\/p>\n<p><span style=\"font-weight: 400;\">Investors can choose to deposit money here for a variety of terms depending on their needs and requirements. Tax deductions under section 80C are only available to FDs with a lock-in duration of five years.<\/span><\/p>\n<p>&nbsp;<\/p>\n<p><span style=\"font-weight: 400;\">For investors looking for safe, consistent profits with minimal risk, fixed deposits have proven a terrific option.<\/span><\/p>\n<p>&nbsp;<\/p>\n<h3><span class=\"ez-toc-section\" id=\"Characteristics_of_Fixed_Deposits\"><\/span><span style=\"font-weight: 400;\">Characteristics of Fixed Deposits:<\/span><span class=\"ez-toc-section-end\"><\/span><\/h3>\n<p>&nbsp;<\/p>\n<p><span style=\"font-weight: 400;\">Due to its customer-oriented features, which are detailed below, fixed deposits have been regarded as a fantastic vehicle of investment.<\/span><\/p>\n<p>&nbsp;<\/p>\n<ol>\n<li>\n<h4><span class=\"ez-toc-section\" id=\"Tenure\"><\/span><span style=\"font-weight: 400;\"> Tenure<\/span><span class=\"ez-toc-section-end\"><\/span><\/h4>\n<\/li>\n<\/ol>\n<p>&nbsp;<\/p>\n<p><span style=\"font-weight: 400;\">The typical term range for fixed deposits is 7 days to 10 years. Fixed deposit interest rates vary according to various tenures and other elements.<\/span><\/p>\n<p>&nbsp;<\/p>\n<ol start=\"2\">\n<li>\n<h4><span class=\"ez-toc-section\" id=\"Secure_investment_options\"><\/span><span style=\"font-weight: 400;\"> Secure investment options<\/span><span class=\"ez-toc-section-end\"><\/span><\/h4>\n<\/li>\n<\/ol>\n<p>&nbsp;<\/p>\n<p><span style=\"font-weight: 400;\">Compared to other investment options, fixed deposits are thought to be a safe mode of investing. These deposits have greater stability and minimal danger. To assess their reliability and comprehend the likelihood of default, investors should investigate the ratings of other NBFCs and organisations other than banks before making any investments.<\/span><\/p>\n<p>&nbsp;<\/p>\n<ol start=\"3\">\n<li>\n<h4><span class=\"ez-toc-section\" id=\"Payments\"><\/span><span style=\"font-weight: 400;\"> Payments<\/span><span class=\"ez-toc-section-end\"><\/span><\/h4>\n<\/li>\n<\/ol>\n<p>&nbsp;<\/p>\n<p><span style=\"font-weight: 400;\">Fixed deposits provide predictably and fixed returns on deposits. These deposits provide a lower rate of return due to lesser risks.<\/span><\/p>\n<p>&nbsp;<\/p>\n<ol start=\"4\">\n<li>\n<h4><span class=\"ez-toc-section\" id=\"An_untimely_or_partial_withdrawal\"><\/span><span style=\"font-weight: 400;\"> An untimely or partial withdrawal<\/span><span class=\"ez-toc-section-end\"><\/span><\/h4>\n<\/li>\n<\/ol>\n<p>&nbsp;<\/p>\n<p><span style=\"font-weight: 400;\">In FDs, premature withdrawals are permitted under particular terms and conditions (which may include penalties) established by the institutions. Additionally, some banks offer the option of early withdrawals without incurring any fees. Premature or partial withdrawals are not permitted with tax-saving FDs, though.<\/span><\/p>\n<p>&nbsp;<\/p>\n<ol start=\"5\">\n<li>\n<h4><span class=\"ez-toc-section\" id=\"Tax_Advantages\"><\/span><span style=\"font-weight: 400;\"> Tax Advantages<\/span><span class=\"ez-toc-section-end\"><\/span><\/h4>\n<\/li>\n<\/ol>\n<p>&nbsp;<\/p>\n<p><span style=\"font-weight: 400;\">Investors may deduct up to Rs. 1.5 lakhs of interest on fixed deposits with a 5-year lock-in under Section 80C of the Income Tax Act, 1961.<\/span><\/p>\n<p>&nbsp;<\/p>\n<h2><span class=\"ez-toc-section\" id=\"ELSS_v_Fixed_Deposit_FD\"><\/span>ELSS v. Fixed Deposit (FD)<span class=\"ez-toc-section-end\"><\/span><\/h2>\n<p>&nbsp;<\/p>\n<p><span style=\"font-weight: 400;\">Both ELSS and FDs may appear to be ideal options when you are thinking about ways to reduce your tax liability through investing. However, it is essential to assess the options in light of your unique financial portfolio. Some factors to consider include age, income, risk tolerance, and time.<\/span><\/p>\n<p>&nbsp;<\/p>\n<p><span style=\"font-weight: 400;\">ELSS, which is best suited for investors with a high-risk tolerance, is essentially a mutual fund investment. The investment is well-liked by people who want to build wealth while reducing their tax obligations. <\/span><\/p>\n<p>&nbsp;<\/p>\n<p><span style=\"font-weight: 400;\">Because you have more time to take on such risks if you&#8217;re a young investor, ELSS may be a good option. With one of the shortest lock-in periods among other tax-saving investments, ELSS is another enticing option for investors who can only commit money for a three-year period. Because of their potential for respectable returns, ELSS can also be employed to achieve specific monetary objectives.<\/span><\/p>\n<p>&nbsp;<\/p>\n<p><span style=\"font-weight: 400;\">Fixed deposits are an excellent investment for those who have limited tolerance for risk because they are handy and safe. Seniors and older investors frequently choose this over other possibilities.<\/span><\/p>\n<p>&nbsp;<\/p>\n<p><span style=\"font-weight: 400;\"> The lock-in term is five years, which is still less than some other tax-savers, and returns are assured. Being able to invest in an FD at a branch or online is also simple for anyone with a bank account.<\/span><\/p>\n<p>&nbsp;<\/p>\n<h3><span class=\"ez-toc-section\" id=\"Should_I_Invest_in_ELSS_Mutual_Funds\"><\/span>Should I Invest in ELSS Mutual Funds?<span class=\"ez-toc-section-end\"><\/span><\/h3>\n<p>&nbsp;<\/p>\n<p><span style=\"font-weight: 400;\">Investments in <a href=\"https:\/\/app.kuvera.in\/explore\/mf\/c\/all\/equity\/elss\">ELSS mutual funds<\/a> are available to any person or HUF who wants to take advantage of section 80C tax savings. There is a certain amount of risk associated with ELSS mutual funds.<\/span><\/p>\n<p>&nbsp;<\/p>\n<p><span style=\"font-weight: 400;\">This is a result of the portfolio&#8217;s exposure to equity securities up to 80%. Therefore, people who understand the risk associated with the equity asset class are most suited for ELSS mutual funds. Comparing these tax-saving funds to other tax-saving plans such as tax saver FDs, they have given better returns historically.<\/span><\/p>\n<p>&nbsp;<\/p>\n<p><span style=\"font-weight: 400;\"> Investors should consider the long term while making ELSS investments. ELSS funds have the shortest lock-in time out of all asset classes that are eligible for tax deductions under Section 80C of the Income Tax Act.<\/span><\/p>\n<p>&nbsp;<\/p>\n<p><span style=\"font-weight: 400;\">Investors can diversify their holdings with ELSS funds. These tax-saving funds are managed by devoted, qualified professionals. By investing in ELSS mutual funds through SIPs, even small investors can reduce their tax liability. Top 5 ELSS funds have historically produced returns of 12 per cent compounded annual growth rate (CAGR) and above in the past 5 years.<\/span><\/p>\n<p>&nbsp;<\/p>\n<h3><span class=\"ez-toc-section\" id=\"How_to_book_an_FD_on_Kuvera\"><\/span><span style=\"font-weight: 400;\">How to book an FD on Kuvera?<\/span><span class=\"ez-toc-section-end\"><\/span><\/h3>\n<p><span style=\"font-weight: 400;\">\u00a0<\/span><\/p>\n<p><span style=\"font-weight: 400;\">Kuvera allows you to open an FD account for free and earn up to 7.35 % interest. If you choose to invest via Kuvera, you will not need a separate savings account. You can invest in FDs of banks and NBFCs with your primary bank account linked to Kuvera. Here are the simple steps to set up an FD account on Kuvera:\u00a0<\/span><\/p>\n<p>&nbsp;<\/p>\n<p><span style=\"font-weight: 400;\"><strong>Step 1<\/strong>: Install the <a href=\"https:\/\/app.kuvera.in\/\">Kuvera app<\/a> or visit our website to sign up.<\/span><\/p>\n<p>&nbsp;<\/p>\n<p><span style=\"font-weight: 400;\"><strong>Step 2<\/strong>: Verify your KYC with PAN, Aadhaar, and in-person through video.<\/span><\/p>\n<p>&nbsp;<\/p>\n<p><span style=\"font-weight: 400;\"><strong>Step 3<\/strong>: Go to \u2018Home\u2019 and select \u2018<a href=\"https:\/\/app.kuvera.in\/explore-invest\">Invest<\/a>\u2019<\/span><\/p>\n<p>&nbsp;<\/p>\n<p><span style=\"font-weight: 400;\"><strong>Step 4<\/strong>: Click on the \u2018<a href=\"https:\/\/app.kuvera.in\/explore\/fixed-deposit\/c\/all\">Fixed Deposit<\/a>\u2019 option.<\/span><\/p>\n<p>&nbsp;<\/p>\n<p><span style=\"font-weight: 400;\"><strong>Step 5<\/strong>: You will see a list of multiple FD options on Kuvera, sorted by tenure, bank, NBFC, etc. Click on any FD to explore its tenure, interest rate, minimum deposit, and lock-in period.\u00a0<\/span><\/p>\n<p>&nbsp;<\/p>\n<p><span style=\"font-weight: 400;\"><strong>Step 6<\/strong>: Choose the fixed deposit you wish to invest in, and tap \u2018Start FD.\u2019<\/span><\/p>\n<p>&nbsp;<\/p>\n<p><span style=\"font-weight: 400;\"><strong>Step 7<\/strong>: Enter the IFSC code, account number, and account type of your primary bank account.\u00a0<\/span><\/p>\n<p>&nbsp;<\/p>\n<p><b>Did you know? You can now invest in ELSS or tax-saving funds on Kuvera:<\/b><\/p>\n<p>&nbsp;<\/p>\n<p><span style=\"font-weight: 400;\"><strong>Step 1<\/strong>: Download the Kuvera app or visit our website.\u00a0<\/span><\/p>\n<p>&nbsp;<\/p>\n<p><span style=\"font-weight: 400;\"><strong>Step 2<\/strong>: Create your account on Kuvera by completing the mandatory KYC procedure. This will hardly take a few minutes. Once that\u2019s completed,\u00a0 select the \u2018Invest\u2019 option on our homepage after which you can select \u2018Mutual Funds\u2019 and \u2018ELSS\u2019.\u00a0<\/span><\/p>\n<p>&nbsp;<\/p>\n<p><span style=\"font-weight: 400;\"><strong>Step 3<\/strong>: Kindly go through the list of all zero-commission direct plans of <a href=\"https:\/\/app.kuvera.in\/explore\/mf\/c\/all\/equity\/elss\">ELSS schemes<\/a> to start investing.<\/span><\/p>\n<p>&nbsp;<\/p>\n<p>&nbsp;<\/p>\n<h4><span class=\"ez-toc-section\" id=\"Interested_in_how_we_think_about_the_markets\"><\/span>Interested in how we think about the markets?<span class=\"ez-toc-section-end\"><\/span><\/h4>\n<p>&nbsp;<\/p>\n<p>Read more: <a href=\"https:\/\/kuvera.in\/blog\/category\/zen-and-the-art-of-investing\/\" target=\"_blank\" rel=\"noopener noreferrer\"><strong>Zen And The Art Of Investing<\/strong><\/a><\/p>\n<p>Watch\/hear on YouTube:<\/p>\n<p>&nbsp;<\/p>\n<p><iframe loading=\"lazy\" title=\"EPF, PPF and VPF | Tax Saving Investments for Guaranteed Returns\" width=\"640\" height=\"360\" src=\"https:\/\/www.youtube.com\/embed\/dbxbBR7it10?list=PLDSzQdT9nLmBFD2p94O5p2pZ4vEUR-Thz\" frameborder=\"0\" allow=\"accelerometer; autoplay; clipboard-write; encrypted-media; gyroscope; picture-in-picture\" allowfullscreen><\/iframe><\/p>\n<p>&nbsp;<\/p>\n<p>Start investing through a platform that brings goal planning and investing to your fingertips. Visit <a href=\"https:\/\/app.kuvera.in\/\">Kuvera.in<\/a> to discover <a href=\"https:\/\/kuvera.in\/blog\/direct-plans-better\/\">Direct Plans<\/a> and <a href=\"https:\/\/app.kuvera.in\/explore\/fixed-deposit\/c\/all\">Fixed Deposits<\/a> and <a href=\"https:\/\/kuvera.in\/user\/login\">start investing today.<\/a>#MutualFundSahiHai #KuveraSabseSahiHai!<\/p>\n","protected":false},"excerpt":{"rendered":"<p>One of the best investment options for tax savings is an equity-linked saving scheme (ELSS) mutual fund. As they invest 80% of their assets in equities, they fall under the category of equity mutual funds as opposed to debt mutual funds. Section 80C of the Income Tax Act of 1961 allows for a tax exemption [&#8230;]<\/p>\n<p><a class=\"btn btn-secondary understrap-read-more-link\" href=\"https:\/\/kuvera.in\/blog\/elss-mutual-fund-v-fixed-deposit\/\">Read More&#8230;<\/a><\/p>\n","protected":false},"author":11,"featured_media":12954,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"_mi_skip_tracking":false},"categories":[72,543,99],"tags":[69,989,211,176,67],"yoast_head":"<!-- This site is optimized with the Yoast SEO plugin v20.6 - https:\/\/yoast.com\/wordpress\/plugins\/seo\/ -->\n<title>ELSS Mutual Fund V. Fixed Deposit - Kuvera<\/title>\n<meta name=\"description\" content=\"Both ELSS and FDs may appear to be ideal options when you are thinking about ways to reduce your tax liability through investing. Read Here!\" \/>\n<meta name=\"robots\" content=\"index, follow, max-snippet:-1, max-image-preview:large, max-video-preview:-1\" \/>\n<link rel=\"canonical\" href=\"https:\/\/kuvera.in\/blog\/elss-mutual-fund-v-fixed-deposit\/\" \/>\n<meta property=\"og:locale\" content=\"en_US\" \/>\n<meta property=\"og:type\" content=\"article\" \/>\n<meta property=\"og:title\" content=\"ELSS Mutual Fund V. Fixed Deposit - Kuvera\" \/>\n<meta property=\"og:description\" content=\"Both ELSS and FDs may appear to be ideal options when you are thinking about ways to reduce your tax liability through investing. 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