benefits. As an alternate investment option to traditional stocks and bonds, investing in ELSS funds can deliver long-term capital growth, good returns, and tax benefits. ELSS funds are a type of Equity-Linked Savings Schemes (ELSS) which are open-ended mutual funds that invest in large and mid-cap stocks that have the potential to grow over the long term. Recently, more investors have been including ELSS funds in their portfolios as they offer non-counterparty risk, wide diversification, attractive returns, excellent tax savings, and more.
For starters, investing in ELSS funds provides investors with a tax advantage. Under India’s Income Tax Act,ELSS investments have the benefit of tax deductions up to 1.5 lakhs per year. An investor can claim a maximum deduction of Rs. 1.5 lakhs under Section 80C of the Income Tax Act for investments made in ELSS funds. This tax deduction can help investors save more money in the long-term.
Secondly, ELSS funds offer higher returns compared to other tax saving instruments such as PPF, NSC,
Article Created by A.I.