{"id":924,"date":"2017-06-09T04:22:27","date_gmt":"2017-06-09T04:22:27","guid":{"rendered":"http:\/\/blog.kuvera.in\/?p=924"},"modified":"2019-06-14T07:31:36","modified_gmt":"2019-06-14T07:31:36","slug":"simple-elss-hack","status":"publish","type":"post","link":"https:\/\/kuvera.in\/blog\/simple-elss-hack\/","title":{"rendered":"Simple ELSS Hack: Tax Savings that sponsor themselves"},"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-69e2312ce525e\" 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-69e2312ce525e\"><\/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-5'><a class=\"ez-toc-link ez-toc-heading-1\" href=\"https:\/\/kuvera.in\/blog\/simple-elss-hack\/#Yes_your_ELSS_can_sponsor_itself\" title=\"Yes, your ELSS can sponsor itself.\u00a0\">Yes, your ELSS can sponsor itself.\u00a0<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-5'><a class=\"ez-toc-link ez-toc-heading-2\" href=\"https:\/\/kuvera.in\/blog\/simple-elss-hack\/#What_do_I_do_with_the_extra_money_I_save\" title=\"What do I do with the extra money I save?\">What do I do with the extra money I save?<\/a><\/li><\/ul><\/nav><\/div>\n<p>With this simple ELSS Hack, within 3 years your ELSS investment requirements will start taking care of themselves.<\/p>\n<h5><span class=\"ez-toc-section\" id=\"Yes_your_ELSS_can_sponsor_itself\"><\/span><strong>Yes, your ELSS can sponsor itself.\u00a0<\/strong><span class=\"ez-toc-section-end\"><\/span><\/h5>\n<p>Set up an SIP in the ELSS scheme of your choice for say 10 years. In the 37<sup>th<\/sup> month, start a Systematic Withdrawal Plan* (SWP). The SWP should be in the same scheme for the same amount for the remaining period of the ELSS SIP, in this case, 7 years.<\/p>\n<figure id=\"attachment_964\" aria-describedby=\"caption-attachment-964\" style=\"width: 1024px\" class=\"wp-caption aligncenter\"><img loading=\"lazy\" class=\"wp-image-964 size-large\" src=\"https:\/\/blog.kuvera.in\/wp-content\/uploads\/2017\/06\/ELSSFeed-4-1024x511.png\" alt=\"A simple ELSS Hack\" width=\"1024\" height=\"511\" srcset=\"https:\/\/kuvera.in\/blog\/wp-content\/uploads\/2017\/06\/ELSSFeed-4-1024x511.png 1024w, https:\/\/kuvera.in\/blog\/wp-content\/uploads\/2017\/06\/ELSSFeed-4-300x150.png 300w, https:\/\/kuvera.in\/blog\/wp-content\/uploads\/2017\/06\/ELSSFeed-4-768x384.png 768w, https:\/\/kuvera.in\/blog\/wp-content\/uploads\/2017\/06\/ELSSFeed-4.png 1802w\" sizes=\"(max-width: 1024px) 100vw, 1024px\" \/><figcaption id=\"caption-attachment-964\" class=\"wp-caption-text\">Self-sponsored ELSS investments<\/figcaption><\/figure>\n<p>The lock-in on ELSS Investments ends after 3 years. So, you are free to withdraw the number of units purchased 36 months ago.<\/p>\n<p>With this strategy, your 1<sup>st<\/sup> month investment is withdrawn in the 37<sup>th<\/sup> month and pays for the 37<sup>th<\/sup> month ELSS investment. In effect, your Tax Saving ELSS investments become self\u2013sustaining without requiring a fresh contribution from your income.<\/p>\n<p>So, go ahead and use this ELSS hack. As long as the ELSS scheme\u2019s NAV is above what it was when you invested 3 years ago, your tax savings will be on auto-pilot.<\/p>\n<p>ELSS investments are a very important investment option for tax savings. You can read about <a href=\"http:\/\/blog.kuvera.in\/034-why-is-elss-better-than-other-tax-saving-investments\/\">how does ELSS fare better<\/a> than other tax savings options. And find out\u00a0<a href=\"http:\/\/blog.kuvera.in\/elss-how-much-should-i-invest\/\">how much should you\u00a0invest in ELSS schemes<\/a>.<\/p>\n<h5><span class=\"ez-toc-section\" id=\"What_do_I_do_with_the_extra_money_I_save\"><\/span><strong>What do I do with the extra money I save?<\/strong><span class=\"ez-toc-section-end\"><\/span><\/h5>\n<p>You can now think about investing the surplus amount that you will now not need for ELSS. Put them in a wider selection of funds. Choose funds that have no lock-in, fewer restrictions and possibly offer better returns than ELSS schemes.<\/p>\n<p>* A Systematic Withdrawal Plan allows you to redeem a pre-specified amount or units regularly (monthly) from your investments in a particular scheme.<\/p>\n<p>Invest in the ELSS Funds that feature consistently in &#8220;Best Mutual Funds&#8221; list across the web <a href=\"https:\/\/kuvera.in\/explore\/top-rated\/equity\/elss\">here.\u00a0<\/a><\/p>\n","protected":false},"excerpt":{"rendered":"<p>With this simple ELSS Hack, within 3 years your ELSS investment requirements will start taking care of themselves. Yes, your ELSS can sponsor itself.\u00a0 Set up an SIP in the ELSS scheme of your choice for say 10 years. In the 37th month, start a Systematic Withdrawal Plan* (SWP). The SWP should be in the [&#8230;]<\/p>\n<p><a class=\"btn btn-secondary understrap-read-more-link\" href=\"https:\/\/kuvera.in\/blog\/simple-elss-hack\/\">Read More&#8230;<\/a><\/p>\n","protected":false},"author":3,"featured_media":964,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"_mi_skip_tracking":false},"categories":[236],"tags":[127,92,125,122,78,74,17,33,126,123],"yoast_head":"<!-- This site is optimized with the Yoast SEO plugin v20.6 - https:\/\/yoast.com\/wordpress\/plugins\/seo\/ -->\n<title>Simple ELSS Hack: Tax Savings that sponsor themselves - Kuvera<\/title>\n<meta name=\"description\" content=\"Did you know your ELSS investments can sponsor themselves after just 3 years? 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