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Tax Planning

Investing in mutual funds is one of the easiest ways to save on taxes, as well as earn some extra money on the side. ELSS especially, is one of the most preferred investments to save on taxes. Besides offering tax exemptions under section 80C, the Equity Linked Savings Scheme also offers two more advantages: it provides investors with the dual benefit of capital appreciation or capital gain, and tax saving. This savings scheme also includes a three year lock-in period. Let's take a closer look at the tax-saving benefits of ELSS:

Income Tax Benefit: With ELSS, investors can get a tax deduction of up to Rs. 1.50 lakhs under section 80C of the Income Tax Act of 1961.

Short Lock-In Period: The three year lock-in period of ELSS funds is much shorter than the lock-in periods demanded by other investment avenues like PPF or NSC under section 80C of the Income Tax Act.

Tax-Free Dividends/Capital Gains: All dividends that are declared under ELSS are exempt from tax. When ELSS units are sold, the profits made from the sale are considered as long-term capital gains and are tax exempt.

Higher Return: In the case of ELSS funds, a large part of the fund is invested in equity. Equity has the potential to generate wealth in the long run, even though it is affected by short-term volatility.

Investing in an Equity Linked Savings Scheme is a great solution for certain types of investors. If you are an investor looking to generate wealth over a long period of time, then ELSS is a good investment for you. If you are looking to invest in something that will provide you with tax deductions under Section 80C, then ELSS is an investment that should definitely be considered. If you have an investment time horizon of three years or more, then you can consider investing in ELSS funds.

When it comes to investing, an approach of investing in small amounts but at regular intervals is a much wiser strategy than investing a huge amount in one shot. This is why Systematic Investment Plans or SIPs are a good idea. SIP is a method of investing in which you can invest tiny amounts in mutual funds, at regular intervals.





All time high inflows suggest that the third wave has not dampened investors’ enthusiasm for equity mutual funds
Tue, 11 Jan 2022 11:58:58 +0530


All time high inflows suggest that the third wave has not dampened investors’ enthusiasm for equity mutual funds
Tue, 11 Jan 2022 11:58:58 +0530


The dip in the valuation of the AMC stocks is in contrast to the favourable industry trends and presents an investment opportunity
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AGS Transact clocked lower profit of Rs 54.79 crore in FY21, down from Rs 83.01 crore a year back, and its revenue declined marginally to Rs 1,758.94 crore from Rs 1,800.44 crore
Mon, 17 Jan 2022 14:41:25 +0530


AGS Transact clocked lower profit of Rs 54.79 crore in FY21, down from Rs 83.01 crore a year back, and its revenue declined marginally to Rs 1,758.94 crore from Rs 1,800.44 crore
Mon, 17 Jan 2022 14:41:25 +0530


AGS Transact clocked lower profit of Rs 54.79 crore in FY21, down from Rs 83.01 crore a year back, and its revenue declined marginally to Rs 1,758.94 crore from Rs 1,800.44 crore
Mon, 17 Jan 2022 14:41:25 +0530


AGS Transact Tech IPO | The issue will entirely be an offer for sale wherein promoter Ravi B Goyal will sell shares worth up to Rs 677.58 crore
Thu, 13 Jan 2022 13:20:03 +0530


Over 23.5 million shares of the manufacturer of active pharmaceutical ingredients changed hands on the NSE
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Tue, 28 Dec 2021 10:00:05 +0530


HP Adhesives traded with volumes of 7.31 lakh equity shares on the NSE, and 1.95 lakh shares on the BSE
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Data Patterns IPO |It is the third company in the field of defence equipment to get listed on the bourses in 2021, after MTAR Technologies in September and Paras Defence Space Technologies in March.
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Data Patterns IPO | Healthy financials with sound orderbook, huge growth potential amid Make in India opportunity boosted investors#39; sentiment.
Fri, 24 Dec 2021 10:00:05 +0530


Medplus Health Services traded with volume of 1.84 crore equity shares on the NSE, and 11.99 lakh equity shares on the BSE
Thu, 23 Dec 2021 17:23:59 +0530


The stock opened at Rs 1,015 on the BSE, and at Rs 1,040 on the National Stock Exchange, higher than the issue price of Rs 796 per share
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CMS Info Systems IPO | The IPO of leading cash management company has managed to get good response especially from retail and qualified institutional investors on its last day of subscription.
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Medplus Health Services IPO | The pharmacy retailer has mobilised Rs 1,398 crore from its public issue, which includes a fresh issue of Rs 600 crore that will be used for working capital requirements of its subsidiary Optival Health Solutions.
Thu, 23 Dec 2021 10:00:31 +0530


Medplus Health Services IPO | The pharmacy retailer has mobilised Rs 1,398 crore from its public issue, which includes a fresh issue of Rs 600 crore that will be used for working capital requirements of its subsidiary Optival Health Solutions.
Thu, 23 Dec 2021 10:00:31 +0530

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