{"id":21726,"date":"2023-02-23T18:18:53","date_gmt":"2023-02-23T12:48:53","guid":{"rendered":"https:\/\/kuvera.in\/blog\/?p=21726"},"modified":"2023-02-23T18:18:53","modified_gmt":"2023-02-23T12:48:53","slug":"invest-in-elss-to-save-income-tax","status":"publish","type":"post","link":"https:\/\/kuvera.in\/blog\/invest-in-elss-to-save-income-tax\/","title":{"rendered":"Invest in ELSS to save income tax"},"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-69d7c4340170e\" 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-69d7c4340170e\"><\/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-4'><a class=\"ez-toc-link ez-toc-heading-1\" href=\"https:\/\/kuvera.in\/blog\/invest-in-elss-to-save-income-tax\/#How_Do_ELSS_Funds_Work\" title=\"How Do ELSS Funds Work?\">How Do ELSS Funds Work?<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-4'><a class=\"ez-toc-link ez-toc-heading-2\" href=\"https:\/\/kuvera.in\/blog\/invest-in-elss-to-save-income-tax\/#Tax_Advantages_Of_ELSS_Fund_Investing\" title=\"Tax Advantages Of ELSS Fund Investing\">Tax Advantages Of ELSS Fund Investing<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-4'><a class=\"ez-toc-link ez-toc-heading-3\" href=\"https:\/\/kuvera.in\/blog\/invest-in-elss-to-save-income-tax\/#How_to_invest_in_ELSS\" title=\"How to invest in ELSS?\">How to invest in ELSS?<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-4'><a class=\"ez-toc-link ez-toc-heading-4\" href=\"https:\/\/kuvera.in\/blog\/invest-in-elss-to-save-income-tax\/#Returns_in_ELSS_funds\" title=\"Returns in ELSS funds\">Returns in ELSS funds<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-4'><a class=\"ez-toc-link ez-toc-heading-5\" href=\"https:\/\/kuvera.in\/blog\/invest-in-elss-to-save-income-tax\/#Conclusion\" title=\"Conclusion\">Conclusion<\/a><\/li><\/ul><\/nav><\/div>\n<div class=\"embed-container\">\n<div class=\"embed-container\">\n<div class=\"embed-container\">\n<div class=\"embed-container\">\n<div class=\"embed-container\">\n<div class=\"embed-container\">\n<div class=\"embed-container\"><\/div>\n<\/div>\n<\/div>\n<\/div>\n<\/div>\n<\/div>\n<\/div>\n<div class=\"embed-container\">\n<div class=\"embed-container\">\n<div class=\"embed-container\">\n<div class=\"embed-container\">\n<div class=\"embed-container\">\n<div class=\"embed-container\">\n<div class=\"embed-container\">\n<div class=\"embed-container\">\n<div class=\"embed-container\">\n<div class=\"embed-container\">\n<div class=\"embed-container\">\n<div class=\"embed-container\">\n<div class=\"embed-container\">\n<div class=\"embed-container\"><iframe src=\"https:\/\/www.youtube.com\/embed\/QENDpw7elyI\" frameborder=\"0\" allowfullscreen=\"allowfullscreen\"><\/iframe><\/div>\n<\/div>\n<\/div>\n<\/div>\n<\/div>\n<div><\/div>\n<\/div>\n<\/div>\n<\/div>\n<\/div>\n<\/div>\n<\/div>\n<\/div>\n<\/div>\n<\/div>\n<h4><span class=\"ez-toc-section\" id=\"How_Do_ELSS_Funds_Work\"><\/span><strong>How Do ELSS Funds Work?<\/strong><span class=\"ez-toc-section-end\"><\/span><\/h4>\n<p>&nbsp;<\/p>\n<p>The Equity Linked Savings Scheme acronym is ELSS, and a three-sentence definition fits the bill.<\/p>\n<p>&nbsp;<\/p>\n<p>ELSS is an open-ended mutual fund in which stocks account for at least 80% of the total investment. Two, by offering benefits under Section 80C of the Income Tax Act, these schemes assist you in reducing your tax liability. Finally, these programmes have a three-year lock-in period.<\/p>\n<p>&nbsp;<\/p>\n<p>By design, an ELSS competes for the money of tax-conscious investors with other products like the PPF, NPS, a tax-saving fixed deposit, a national savings certificate, etc. An ELSS is a pure-play equity product, primarily fixed-income products, primarily fixed-income products, primarily fixed-income products, in contrast to these other instruments.<\/p>\n<p>&nbsp;<\/p>\n<p>ELSS is therefore classified as more of a wealth creation product than a savings product.<\/p>\n<p>&nbsp;<\/p>\n<p>Therefore, the ELSS mutual funds progress along a choppy path and provide returns that experience many ups and downs. However, it does make up for this volatility by possibly providing higher returns.<\/p>\n<p>&nbsp;<\/p>\n<h4><span class=\"ez-toc-section\" id=\"Tax_Advantages_Of_ELSS_Fund_Investing\"><\/span><strong>Tax Advantages Of ELSS Fund Investing<\/strong><span class=\"ez-toc-section-end\"><\/span><\/h4>\n<p>&nbsp;<\/p>\n<p>Section 80C of the Income Tax Act grants tax benefits for investments made in equity-linked savings scheme funds. Although there is no maximum investment amount, the Income Tax regulations only allow for a tax deduction of up to Rs. 1.5 lakh.<\/p>\n<p>&nbsp;<\/p>\n<p>This amount of Rs. 1.5 lakh is an aggregate, which means that your investments in other tax-saving products like provident funds, national savings certificates, life insurance premiums, and a few others are also included in this Section 80C deduction.<\/p>\n<p>&nbsp;<\/p>\n<h4><span class=\"ez-toc-section\" id=\"How_to_invest_in_ELSS\"><\/span><strong>How to invest in ELSS?<\/strong><span class=\"ez-toc-section-end\"><\/span><\/h4>\n<p>&nbsp;<\/p>\n<p>An investor must be KYC compliant to invest in an ELSS. The investment can be made by going to the registrar&#8217;s office or a branch office of the fund house with a properly completed physical form and a check. One can also begin investing online through aggregators or the fund house website. After investing, the person is given a folio number. By referencing the same folio number of the same mutual fund house using their transaction form, future investments in the ELSS scheme can be made.<\/p>\n<p>The investor can select from one of the following options when investing in the best ELSS funds: (i) Growth option, (ii) Dividend option, or (iii) Dividend Reinvestment option.<\/p>\n<p>&nbsp;<\/p>\n<h4><span class=\"ez-toc-section\" id=\"Returns_in_ELSS_funds\"><\/span><strong>Returns in ELSS funds<\/strong><span class=\"ez-toc-section-end\"><\/span><\/h4>\n<p>&nbsp;<\/p>\n<p>An ELSS is a mutual fund; just like all mutual funds, these funds&#8217; returns are not guaranteed. However, looking at the top schemes reveals that if you stick with it through the market&#8217;s ups and downs, the category has performed very well for many years.<\/p>\n<p>&nbsp;<\/p>\n<p>Many ELSS investors use the SIP method to make more in-depth investments. So, over time, a SIP of at least Rs. 1,000 per month will grow.<\/p>\n<p>&nbsp;<\/p>\n<p>In general, ELSS fund investments should be made with the long term in mind. It aids in wealth accumulation but also assists investors in navigating the volatility linked to market-linked assets.<\/p>\n<p>&nbsp;<\/p>\n<h4><span class=\"ez-toc-section\" id=\"Conclusion\"><\/span><strong>Conclusion<\/strong><span class=\"ez-toc-section-end\"><\/span><\/h4>\n<p>&nbsp;<\/p>\n<p>ELSS is a two-in-one investment option. Not only does it help you pay less in taxes, but you can use that money to build up a sizeable fortune. Therefore, you can use these funds to reach your long-term objectives, such as retirement and the education of your children, where you must significantly outpace inflation.<\/p>\n<p>&nbsp;<\/p>\n<p><strong>Interested in how we think about the markets?<\/strong><\/p>\n<p>Read more: <a href=\"https:\/\/kuvera.in\/blog\/in-investing-the-simplest-things-are-the-hardest\/\">Zen And The Art Of Investing<\/a><\/p>\n<p>&nbsp;<\/p>\n<p><strong>Watch here:<\/strong> Kuvera insights with industry experts.<\/p>\n<div class=\"embed-container\">\n<div class=\"embed-container\"><iframe src=\"https:\/\/www.youtube.com\/embed\/TMhMi8iIojU\" frameborder=\"0\" allowfullscreen=\"allowfullscreen\"><\/iframe><\/div>\n<\/div>\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>How Do ELSS Funds Work? &nbsp; The Equity Linked Savings Scheme acronym is ELSS, and a three-sentence definition fits the bill. &nbsp; ELSS is an open-ended mutual fund in which stocks account for at least 80% of the total investment. Two, by offering benefits under Section 80C of the Income Tax Act, these schemes assist [&#8230;]<\/p>\n<p><a class=\"btn btn-secondary understrap-read-more-link\" href=\"https:\/\/kuvera.in\/blog\/invest-in-elss-to-save-income-tax\/\">Read More&#8230;<\/a><\/p>\n","protected":false},"author":11,"featured_media":21727,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"_mi_skip_tracking":false},"categories":[99],"tags":[2172,2182],"yoast_head":"<!-- This site is optimized with the Yoast SEO plugin v20.6 - https:\/\/yoast.com\/wordpress\/plugins\/seo\/ -->\n<title>How early to start and how much should you invest?<\/title>\n<meta name=\"description\" content=\"Understand all about investments, how early one needs to start investing, how much to invest, and much more.\" \/>\n<meta name=\"robots\" content=\"index, follow, max-snippet:-1, max-image-preview:large, max-video-preview:-1\" \/>\n<link rel=\"canonical\" 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