INCOME TAX All about the Equity Linked Savings Scheme & its Returns

All about the Equity Linked Savings Scheme & its Returns

All about the Equity Linked Savings Scheme & its Returns

5 Golden Tips to Maximise ELSS Fund Returns

ELSS or Equity Linked Savings Scheme is a type of diversified equity-oriented scheme which comes with a lock-in period of 3 years. By investing in this type of scheme, one will get tax exemptions u/s 80C of the IT Act 1961. A key interesting feature of this investment scheme is that it has the shortest lock-in period among all the other tax-saving instruments.

In this blog, we will walk you through 5 golden tips on how to maximise ELSS fund returns while highlighting more such interesting features associated with the scheme.

What Are the 5 Tips to Increase ELSS Fund Returns?

Predicting ELSS returns can be a bit difficult for an individual as it is closely linked to the market. However, there are a few tips which one can consider for increasing their ELSS fund returns rate. Keep reading to discover these 5 golden strategies.

  1. You must make use of its short lock-in period of 3 years. In comparison to other tax-saving options, equity-linked savings schemes provide higher returns. Besides, you can choose to invest in such a scheme as part of your tax planning management.
  2. One looking for a long-term savings scheme opts for SIP in an ELSS. After completing the lock-in period of three years, you can start SWP (Systematic Withdrawal Plan). You can change the withdrawal plan from one ELSS scheme to another.
  3. One must try to invest in the best ELSS mutual fund to benefit from maximum returns. You must note that these returns are based on less than 5 to 10 years of historical data on previous track records and the expertise of the fund manager.
  4. You must opt for ELSS to avail the tax benefits. If you invest ₹1,50,000 in an ELSS fund, there will be a tax exemption. Among the other mutual fund schemes, it is the only scheme which enables investors to save tax along with getting higher returns.
  5. One can align their equity-linked savings scheme with their mid-financial goals because this way you can maximise your profits. An investor should plan their investment strategy plans as per their future financial goals and needs.

How to Use an ELSS Calculator?

One can use  ELSS calculators free of cost and as many times as they want to get an estimated value of their investment. This online financial tool will provide you with quick and precise outputs in return, once you set minimal inputs. Refer to the below step-by-step guidelines on how you easily use this online tool.

Step 1: Navigate and open an online ‘ELSS Calculator’ tool.

Step 2: Adjust the slider to set the monthly instalment amount.

Step 3: Enter the expected rate of return.

Step 4: Use the slider to set the tenure.

You will get the results instantly on the screen.

Who Should Invest in ELSS Funds?

Below you will get an idea regarding who should consider investing in ELSS tax-saver mutual funds.

  • Salaried person
  • First-time investors
  • Personnel having a long-term investment horizon
  • Risk-tolerance investors
  • Investors seeking to save tax
  • Investors looking for equity exposure

Factors to Consider While Investing in ELSS Funds

You must consider all the below-stated factors before you decide to invest in ELSS tax-saver funds.

  • Reviewing Fund House
  • Fund Returns
  • Financial Parameters
  • Expense Ratio
  • Fund Manager

The Bottom Line

Although an attractive investment option, every individual must chalk out proper strategic planning before prioritising this scheme. For this, you need to assess your risk tolerance, future financial goals and requirements to get maximum ELSS fund returns.

Disclaimer: The content of this post isn't considered to be professional or legal advice, We aren't responsible for any damages arising from your access to the location content & must not be relied on or used as a substitute for legal advice from a lawyer professional in your jurisdiction. CARajput is among India's big digital compliance services platform which committed to helping people have started & developed their businesses. We had started with the goal of creating it easier for start-ups to start out their business. Our main aim is to assist the businessman with applicable laws & regulations compliance and providing support at each & every level to make sure the business stays compliant and growing continuously. For any query, help or feedback you may in touch on singh@carajput.com or Call or what’s-up on 9-555-555-480

Share This Post

Related Articles

Related Videos


E.FILING OF INCOME TAX RETURN | What is e-filing of income tax | Steps to file

E.filing of Income Tax Return | What is e-filing of income tax | Steps to file

Published On: Jan 03, 2022 | By: RJA

Need help?

Request a call
from a RJA
Business Advisor.

LET'S TALK

Private Limited Company

Popular Categories

Browse Blogs

Recent Posts

CBDT Circular : TDS/TCS Relief Due to Inoperative PAN

CBDT Circular : TDS/TCS Relief Due to Inoperative PAN

How to Handling negative IGST liability under the GST System in India

How to Handling negative IGST liability under the GST System in India

More than 8 lakhs ITR (income tax returns) for AY 24–25 have been filed so far.

More than 8 lakhs ITR (income tax returns) for AY 24–25 have been filed so far.

MCA : PAS Rules -Pvt Ltd Co. to issue shares etc in Demat form only

MCA : PAS Rules -Pvt Ltd Co. to issue shares etc in Demat form only

Complete Guide on ROC Filing of Form MSME- 1

Complete Guide on ROC Filing of Form MSME- 1

Connect with a RJA Advisor

Fields marked with an * are required

Enquire Us

Please send us your query and we feel very happy helping you

Testimonials

  • Thank you very much for all your help in setting up my new company and clearing up all outstanding business in my sole trader accounts. For the first time in years I have peace of mind regards my business accounts. Your workforce are a credit to you, the girls at reception are so helpful and Chris has been brilliant. It is very much appreciated.

    A US consultancy group

  • Rajput Jain & Associates. are a tremendous value added to me as an executive and a busy parent. It just makes sense to delegate my tax file to them -- they are proactive, extremely service oriented, and most importantly, I am completely confident they are finding every dollar of tax savings available to me.

    A Leading Service Provider

  • We use Rajput Jain & Associates for all our accounting, Corporation tax, VAT and other compliance needs. The service is professional, courteous and prompt. I would recommend Rajput Jain & Associates to any company requiring a comprehensive accounting and tax service.

    A Leading Consultancy Firm in Dubai

Money Back Guarantee

Not happy with the service? You can request a refund at anytime within 30 days!

24/7 Support

Get support through phone, email, mobile app or live chat - 24/7, 365 days.

EMI Payment

Easily pay online with EMI payments, credit or debit card, net banking, PayPal and more.

Get In Touch--

Rajput Jain & Associates

Add: P-60, Connaught Circus, Connaught Place, New Delhi-110001

Email: singh@carajput.com

Phone: 9555555480

Legal Disclaimer--

The information contained on this website merely provides details of our firm to persons who have shown interest in knowing more about us and is not intended to solicit work or advertise our capabilities in any manner. The information provided on this website is general in nature and should not be used as a basis of decision-making without further professional advice. The third party site links are only provided for ready reference of the users and CA Rajput Jain & Associates neither controls their content nor undertakes any responsibility regarding them.

© 2016 Rajput Jain & Associates. All Rights Reserved | Sitemap

Call Email