Tax Saving Investment: Equity Linked Savings Scheme (ELSS) is one of the popular options for tax saving investment.
Tax Saving Investment: Equity Linked Savings Scheme (ELSS) is one of the popular options for tax saving investment. There is a practice to invest in these funds also for retirement in salaried class. Investments in ELSS can be done through both lump sum and SIP. Tax is also provided under Section 80C of the Income Tax Act, if requested in ELSS. Its most special thing is that there is a lock in period in this category. 3 years in some and 5 years in some. For this reason, it is a better option for long term Nivea. Looking at the returns of the last 5 years, it has given fierce returns to the investors.
Why ELSS is attractive
In a financial year, you can avail tax exemption under Section 80C of Income Tax Act on investments up to Rs 1.5 lakh. However, there is no investment limit in ELSS. The return on investment in ELSS and the amount of redemption is also completely tax free. ELSS gives better post-tax returns, as LTCG is exempted from income tax up to Rs 1 lakh a year from ELSS mutual funds. Taxes at the rate of 10 per cent have to be paid for profits exceeding this limit. Talking about investing in ELSS, at least 80 percent of this exposure is in equity. It can technically be up to 100 percent. It also has the flexibility to invest in all market caps.
No lock in period
These funds have a lock-in period but the specialty is that even after that, Nivea can continue in it. A scheme with a lock in period of 3 years or 5 years can also be held for a long time. Keeping it for a longer period increases the chance of increasing returns. Here we have given the information of the fund that has given the highest return in 5 years.
Mirae Asset Tax Saver
5 Year Return: 21%
Value of 1 Lakh Investment in 5 Years: Rs. 2.60 Lakh Value
of 10,000 Monthly SIP in 5 Years: Rs. 9.89 Lakh
Minimum Investment: Rs. 500
Minimum SIP: Rs. 500
Assets: 5,044 Crore (November 30, 2020 )
Expense Ratio: 0.30% (November 30, 2020)
Risk: Below Average
BOI AXA Tax Advantage Fund
5 Year Return: 17%
Value of 1 Lakh Investment in 5 Years: Rs. 2.23 Lakh Value
of 10,000 Monthly SIP in 5 Years: Rs. 9.67 Lakh
Minimum Investment: Rs. 500
Minimum SIP: Rs. 500
Assets: 351 Crore (November 30, 2020 )
Expense Ratio: 1.51% (November 30, 2020)
Risk: Average
Canara Robeco Equity Tax Shares
5 Year Return: 16%
Value of 1 Lakh Investment in 5 Years: Rs. 2.13 Lakh Value
of 10,000 Monthly SIP in 5 Years: Rs. 9.62 Lakh
Minimum Investment: Rs. 500
Minimum SIP: Rs. 500
Assets: 1333 Crore (November 30, 2020 )
Expense Ratio: 1.19% (November 30, 2020)
Risk: Low
Axié Long Term Equity
5 Year Return: 16%
Value of 1 Lakh Investment in 5 Years: Rs. 2.12 Lakh Value
of 10,000 Monthly SIP in 5 Years: Rs. 9.38 Lakh
Minimum Investment: Rs. 500
Minimum SIP: Rs. 500
Assets: 26618 Crore (November 30, 2020 )
Expense Ratio: 0.74% (November 30, 2020)
Risk: Average
DSP Tax Saver
5 Year Return: 15.5%
Value of 1 Lakh Investment in 5 Years: Rs 2.07 Lakh Value
of 10,000 Monthly SIP in 5 Years: Rs 8.79 Lakh
Minimum Investment: Rs 500
Minimum SIP: Rs 500
Assets: 7,015 Crore (November 30, 2020 )
Expense Ratio: 0.91% (November 30, 2020)
Risk: Average
