Skip to main content

ELSS Mutual Funds Investing Strategies

   Best ELSS Funds Online


When it comes to saving tax, Equity Linked Savings Scheme (short for ELSS) of mutual funds is one of the most favoured investment options. It has a lock-in period of 3 years and has the potential to provide you high returns linked to the market. Moreover, there is no limit to making investments in these schemes. However, one should devise a proper strategy while investing in ELSS to gain good returns over a period of time. This is because the returns are market-linked and not guaranteed.

Here are four important strategies that one should adopt while investing money in ELSS.

Invest in lump-sum or in SIP mode?

The best way to invest into an ELSS is to plan ahead by taking stock of your projected Section 80C deficit at the start of the financial year, and then start a monthly SIP to cover the gap. Not only will this make it easier on your pocket, it will also smoothen your long-term returns through rupee cost averaging.

Even if you have a lump sum to invest in ELSS, it is advisable to exercise caution, given the rich market valuations right now. Lump-sums can be staggered into an ELSS by parking the money into a liquid fund, and starting an STP (Systematic Transfer Plan) that will complete the deployment into the ELSS within the requisite time frame

Should you invest in the same fund again?

Investors are at times confused on whether they can invest in the same fund in which they invested in the previous year. Also, how will they get the tax benefit and on maturity how much money they should redeem? Investors can invest in the same ELSS scheme in which they had invested their money in the previous years either in form of a lump sum or through an SIP mode. However, you need to keep a track and monitor the fund performance before investing in the same fund.


You can invest in the same ELSS every financial year. In fact, you can invest as much as you like in an ELSS scheme, but you will get tax benefits only up to the prescribed tax exemption limit of a maximum of Rs 1,50,000.


The tax benefit is given basis the transaction date, as long as the investment(s) are made in the same financial year for which you are seeking tax benefits. After completing 3 years, you can place a redemption request for the units that have completed 3 years or more

Link it to your financial goal

Make sure you align your ELSS investments to a long-term goal such as your retirement or your child's education. Doing so will remove the fixation on the 3-year lock-in period and allow you to benefit from a longer investment horizon in the process. In our view, 3 years is too short a time frame for an equity investment anyhow, and investors should ideally not confuse the mandated lock-in period with the ideal holding period for an ELSS.

Create an investment cycle

While investing money in ELSS regularly in every financial year, you can create an investment-free cycle after the third year of your investments. From the fourth year onwards you can even choose not to invest money from your pocket and still avail tax benefits. Yes, once your first year investment reaches its maturity, after the third year you can redeem the same amount and invest it in the fourth financial year to avail tax benefit. Similarly, the process can be continued for any number of years.                



Invest Rs 1,50,000 and Save Tax up to Rs 46,350 under Section 80C. Get Great Returns by Investing in Top Performing Tax Saving ELSS Funds. Save Tax Get Rich

Top 10 Tax Saving Mutual Funds of 2018

Best 10 ELSS Mutual Funds to Invest in India of 2018

1. Tata India Tax Savings Fund 

2. Sundaram Diversified Equity Fund

3. DSP BlackRock Tax Saver Fund

4. Mirae Asset Tax Saver Fund

5. Birla Sun Life Tax Relief 96

6. ICICI Prudential Long Term Equity Fund

7. Invesco India Tax Plan

8. Reliance Tax Saver (ELSS) Fund

9. BNP Paribas Long Term Equity Fund

10. Axis Tax Saver Fund


Invest in Best Performing Tax Saver Mutual Funds of 2018

Invest Best Tax Saver Mutual Funds Online

Download Top Tax Saver Mutual Funds Application Forms


For further information contact SaveTaxGetRich on 94 8300 8300

OR

You can write to us at

Invest [at] SaveTaxGetRich [dot] Com

OR

Call us on 94 8300 8300


Popular posts from this blog

Mutual Fund Review: Taurus Tax Shield

    Taurus Tax Shield has seen a turnaround in performance since 2007, but still remains a volatile offering… The fund has seen a turnaround in its performance since 2007 and has delivered impressively during market rallies since then. The portfolio is also more diversified. It contained its downfall to an average level in 2008 but is still one of the most volatile offerings in this category. Bold investors can look at this fund.   Strategy The fund manager invests across the market capitalisation and sectors. The selection of stocks is made on the basis of long-term business prospects and value creation. Fund Insight Launched in March 1996, the fund was a laggard with just two annual outperformances. Concentrated stock bets and high exposure to mid and small caps led to it being hit harder during market downturns. The number of stocks in the portfolio never exceeded 20 and it was not rare to see the top 5 holdings account for around 60 per cent of the portfolio. After b...
Read more

Use Mutual Fund SWPs for getting fixed payments

Invest In Tax Saving Mutual Funds Online Download Tax Saving Mutual Fund Application Forms Buy Gold Mutual Funds Call 0 94 8300 8300 (India)   Investors time withdrawals optimally to save on tax The systematic withdrawal plan, or SWP, could be called the lesser known cousin of the much talked about and publicised systematic investment plan (SIP). There's yet another cousin — the Systematic Transfer Plan ( STP ). In SIP, you invest a fixed sum of money at regular intervals (monthly/ quarterly) to buy some units of a mutual fund scheme. In SWP, as the name suggests, you do the opposite: You redeem some mutual fund units from your portfolio to get a fixed sum of money at regular intervals (monthly/quarterly/half year/yearly). In SIP, you get a higher numbers of units when the markets are down, and lesser in a buoyant market. In SWP, going by the product logic, you redeem higher number of units when the markets are do...
Read more

AXIS Long Term Equity Fund - The Best Tax Saver Fund for 2016

  AXIS Long Term Equity Fund - Invest Online   History:   The open ended mutual fund was launched on December 21 in the year 2009. It is benchmarked against BSE 200 and managed by the fund manager JINESH GOPANI. Initially the scheme was called as Axis tax saver fund but later it was renamed as Axis long term equity fund with effect from September 2, 2011. Nature of investment: As far as asset allocation is concerned, 97.52% of the stocks are equity and 0.02% is debt based. The primary focus of the fund is to invest in diversified equity stocks that have higher growth potential. Total asset size of the fund is in the tune of 4,996 CRORE as of June 30, 2015. Performance: The performance of the fund for one year, 3 years and 5 years are 23.6%, 29.9% and 19.1 respectively which are far greater than 6.4%, 14% and 5.6% benchmark figures. It has also preformed fairly well against SBI magnum Tax Gain (G) and HDFC tax saver (G). The growth comparison is enumerated below;                        ...
Read more

Health insurance guide - Part I

Insurance, by definition, is morbid. What if I die suddenly? What if my home caught fire? What if I had to undergo expensive medical treatment? What if something that I thought happened only to others befell me? Insurers, who work with large samples, calculate the probability of such an event and, hence, the possibility of them having to pay out a sum of money to mitigate, to the extent possible, the effects of that disaster. However, the possibility of you undergoing some kind of expensive medical treatment during your lifetime is far more likely than you dying suddenly or your house burning down. Given that costs at private healthcare facilities, where you are most likely to land up, is high, and, doubling every four years 10 months or so, the rest of your money life could easily go out of whack if you had to incur such expenses. Just 12 per cent of India's population is covered with some sort of health insurance. Pared to the bone, for a comparatively small price, health insu...
Read more

IDFC Classic Equity Fund

Invest In Tax Saving Mutual Funds Online Download Tax Saving Mutual Fund Application Forms Buy Gold Mutual Funds Call 0 94 8300 8300 (India)   IDFC Classic Equity Fund IDFC Classic Equity is a large-cap equity fund which currently has assets under management worth Rs. 158.52 crore. It was launched in August 2005. The fund is benchmarked against the BSE-200 Index. Performance YTD 1-Year 3-Year 5-Year Since Inception IDFC Classic Equity 0.93 26.61 6.30 1.01 11.65 BSE 200 1.52 17.31 6.00 1.99 12.98 All figures in % as on January 31, 2013; Returns above one-year in CAGR terms ...
Read more
Related Posts Plugin for WordPress, Blogger...
Invest in Tax Saving Mutual Funds Download Any Applications
Transact Mutual Funds Online Invest Online
Buy Gold Mutual Funds Invest Now