Why should I invest in ELSS/Tax-Saving funds?
There are a number of benefits of investing in ELSS funds.
- Starts at just Rs. 500 –you can start investing in ELSS funds at a low starting amount of just Rs.500.
- Tax saving – ELSS funds qualify for tax saving. Investments in ELSS funds up to Rs. 1.5 lakhs will help reduce your tax burden (For people in the 30% tax bracket, you can save up to Rs. 45,000 every year)
- Capital growth – your money keeps growing. With the power of compounding, you will accumulate a good amount by the time you withdraw
- Disciplined investing –with the power of monthly investments, you can get disciplined with your investment and tax planning
- Tax-free returns – the returns you gain from ELSS funds are completely tax-free
- Shortest lock-in period –out of all the 80C investment options that let you grow your wealth, ELSS funds have the shortest lock-in period of 3 years
- Inflation-beating returns –since ELSS funds are equity mutual funds, they give superior returns (12-14%) compared to other tax-saving options in the long term (5-7 years)
