Are you looking for an investment tool that can significantly reduce your tax woes and build your wealth? If so, then look no further than Equity Linked Savings Scheme (ELSS) Mutual Funds. An ELSS mutual fund scheme is one of the most effective investment tools that can help you save taxes while enjoying a higher rate of return.
ELSS funds are a kind of tax-saving mutual funds that invests the majority of its corpus (almost 65% of the portfolio) in equities, making it a high-risk and high-return investment option. What sets ELSS funds apart from other tax-saving options is their lock-in period of three years, the shortest among all tax-saving investment options. This means the investments made in ELSS funds cannot be withdrawn until the completion of three years, thus providing a stable and secure investment platform.
Apart from being a tax-saving option, ELSS funds may offer high returns compared to other tax-saving options such as PPF or fixed deposits. Moreover, investing in ELSS mutual funds can help create wealth and ensure financial freedom for many investors. Under the guidelines of Section 80C of the Income Tax Act, 1961, ELSS mutual funds offer tax deductions of up to Rs 1,50,000 annually. You might avoid paying taxes on up to Rs 46,800 every year by doing this. You should consult your own tax consultant/ financial advisor to understand specific tax implications arising out of your investment in Equity Linked Saving Scheme (ELSS).
There are over 30 different ELSS schemes on the Bajaj Finserv platform for you to choose from based on your risk appetite, AMC consideration, returns, ratings, and benchmark index.
Features of ELSS Mutual Funds on Bajaj Finserv platform:
Things to consider before investing in ELSS?
When deciding whether to invest in an ELSS mutual fund, the following aspects must be taken into account:
In conclusion, ELSS mutual funds are an advantageous investment option for investors desiring the benefits of tax savings and high returns. These funds come with a shorter lock-in period, a higher return potential and can help you achieve financial freedom in the long run. Bajaj Finance's strong reputation in the market, transparency in processes, customer-centric services, 100% online journey, and product flexibility make it a trusted partner for investors to purchase ELSS funds from the app. Post purchase, customers also get to manage their own portfolio, make payments, invest in other funds in a few clicks through ‘My Account’, the customer care portal of Bajaj Finance.