Skip to main content

Plan to Save Taxes by Investing in ELSS Funds

 
Online Investing in ELSS Funds

The month of December is the Fourth quarter of the financial year. This means you will have only 6 months left in the year to invest in tax-saving instruments like ELSS funds. But a lot of people will think that even 6 months is a lot of time.

Generally, tax-savers tend to make their tax-saving investments only in February and March when they have to submit investment proofs. But those investments will be made in haste and might not turn out to be as meaningful as they should be. The purpose of tax-saving investments in ELSS funds shouldn't be only to save taxes, they should be used to achieve long-term financial goals as well.

This is why you need to plan out your investments well before the due date of 31st March. Ideally, you should begin investing at the start of a new financial year itself, but don't be concerned if you didn't do that. You can still make use of the coming 6 months to fulfill your tax-saving obligations and get the best out of your ELSS fund investments.

The first thing you should do is figure out how much of the Rs 1.5 lakh Section 80C limit you have to invest in ELSS funds. To do this, you need to first look at the 80C deductions that you are already putting money in. These include your annual life insurance premium, PPF contribution, home loan principal repayment, children's school tuition fees, etc. These are the investments and expenses you make anyway and once you have information about them, you will be able to see how much of the Rs 1.5 lakh is left to invest in ELSS funds.

Let's suppose you have Rs 1 lakh of the 80C limit left to invest in ELSS funds. The mistake you shouldn't make here is investing that entire amount in one go. Equity-based investments earn higher returns when they are spread out over a period of time. This is why systematic investment plans (SIP) are recommended by below. What you should do is divide the amount you want to invest in ELSS funds for this financial year into 6 parts and invest it every month from October to March. This will allow you to benefit from rupee cost averaging and purchase fund units at different levels of the market. It will also allow you to make sure that you don't catch a market peak.

Once you have the exact amounts to be invested, you can split it across more than one ELSS fund to benefit from diversification and different investment styles. A portfolio of 3 ELSS funds would be ideal for most tax-savers. Pick ELSS funds on the basis of their historic performance. A fund that has done well over different market cycles would be best placed to navigate the uncertainties of the equity markets in the future. Furthermore, investing in more than one fund cushions your portfolio against the underperformance of any one of your funds.

Of course, before you invest in ELSS funds, you need to understand that they don't guarantee returns. These tax-saving mutual funds invest in equities and are susceptible to equity-related risks. But they make good investment options because they have a lock-in of only 3 years and the equity exposure can help beat inflation in the long run.

ELSS funds should be a part of most tax-savers' investment portfolios. When your investments in them are properly planned out, they provide the dual benefit of tax saving and long-term wealth.







------------------------------------------
Invest Rs 1,50,000 and Save Tax upto Rs 46,350 under Section 80C. Get Great Returns by Investing in Best Performing ELSS Funds

Top 4 Tax Saver Mutual Funds for 2017

Best 4 ELSS Mutual Funds to invest in India for 2017

1. DSP BlackRock Tax Saver Fund

2. Invesco India Tax Plan

3. Tata India Tax Savings Fund

4. BNP Paribas Long Term Equity Fund



Invest in Best Performing 2017 Tax Saver Mutual Funds Online

Invest Best Tax Saver Mutual Funds Online

Download Top Tax Saver Mutual Funds Application Forms


For further information contact Prajna Capital on 94 8300 8300

--------------------------------------------

Leave your comment with mail ID and we will answer them

OR

You can write to us at

PrajnaCapital [at] Gmail [dot] Com

OR

Call us on 94 8300 8300

---------------------------------------------

 

Popular posts from this blog

SBI Magnum Tax Gain Scheme 1993 Applcation Form

    https://sites.google.com/site/mutualfundapplications/tax-saving-mutual-funds-elss     Investment Details Basics Min Investment (Rs) 500 Subsequent Investment (Rs) 500 Min Withdrawal (Rs) -- Min Balance -- Pricing Method Forward Purchase Cut-off Time (hrs) 15 Redemption Cut-off Time (hrs) 15 Redemption Time (days) -- Lock-in 1095 days Cheque Writing -- Systematic Investment Plan SIP Yes Initial Investment (Rs) -- Additional Investment (Rs) 500 No of Cheques 12 Note Monthly investment of Rs 1000 for 6 months and quarterly investment of Rs 1500 for 4 quarters.
Read more

Birla Sun Life Tax Plan Online

Invest Birla Sun Life Tax Plan Online   An Open-ended Equity Linked Savings Scheme (ELSS) with the objective to achieve long-term growth of capital along with income tax relief for investment.   After a bad patch from 2008 to 2010, Birla Sun Life Tax Plan has made a big comeback in the last five years, with a particularly good run since 2014. The fund's rankings, which had slipped to two stars in 2011-12, recovered sharply to three-four stars in the last three years. The fund has delivered a particularly large outperformance over its benchmark and peers in the last couple of years. The fund's investment strategy focuses on a diversified and high-quality portfolio, with parameters such as capital ratios and balance-sheet strength used to judge quality. It uses a combination of top-down and bottom-up approaches to take sector/stock positions. The fund avoids highly leveraged plays. Staying more or less fully invested at all times, the fund parks roughly half of its portfoli
Read more

Should you Roll Over 1 year Fixed Maturity Plans?

The period between January and March typically sees an uptick in the launch of fixed maturity plans, or FMPs. Not this year. Instead, fund houses are busy rolling over or extending the tenure of their one- year FMPs launched last year to three years. Investors in one- year FMPs have a choice. Either redeem units or roll over to three years. If you exit now, your gains will be added to your income and taxed in line with your individual slab rate of 10, 20 or 30 per cent. If you stay invested for two more years, you pay 20 per cent tax with indexation benefit. Yields have softened in the past few months on expectations of a rate cut. If the central bank continues its soft monetary stance, yields are likely to fall further. In such a scenario, it makes sense for investors, particularly those in the 30 per cent tax bracket, to roll over their investments and lock in at a higher yield now. In a surprise move, the Reserve Bank of India cut repo rate by 25 basis
Read more

Mutual Fund Review: IDFC Premier Equity Fund

  IDFC Premier Equity Fund, which falls under the presumed high risk group of mid- and small-cap schemes, can rely on astute and timely equity picks. These make it less vulnerable to fluctuations compared with others in the category   IDFC Premier Equity Fund is designed to invest in upcoming, but promising businesses available at cheap valuations, and hold on to these businesses until they reap desired returns. The experiment has been successful so far, and IDFC Premier Equity has emerged as one of the top performing mutual fund schemes in the mid- and smallcap category of equity schemes.    While the scheme is an open-ended equity fund, i.e. open for subscriptions throughout the year, it has a unique philosophy to limit fresh inflows. Thus, while an investor can always take the systematic investment plan ( SIP ) route to invest in the scheme throughout the year, inflows through a lumpsum investment have been restricted. Since inception, IDFC Premier Equity has been opened for l
Read more

IDFC Premier Equity Fund dividend

  IDFC Mutual Fund   has announced dividend under the dividend option of   IDFC Premier Equity Fund Direct-D . The quantum of dividend shall be   R 4.3464 per unit.   The record date has been fixed as May 06, 2015. Best Tax Saver Mutual Funds or ELSS Mutual Funds for 2015 1. ICICI Prudential Tax Plan 2. Reliance Tax Saver (ELSS) Fund 3. HDFC TaxSaver 4. DSP BlackRock Tax Saver Fund 5. Religare Tax Plan 6. Franklin India TaxShield 7. Canara Robeco Equity Tax Saver 8. IDFC Tax Advantage (ELSS) Fund 9. Axis Tax Saver Fund 10. BNP Paribas Long Term Equity Fund You can invest Rs 1,50,000 and Save Tax under Section 80C by investing in Mutual Funds Invest in Tax Saver Mutual Funds Online - Invest Online Download Application Forms For further information contact Prajna Capital on 94 8300 8300 by leaving a missed call --------------------------------------------- Leave your comment with mail ID and we will answer them OR You can write to us at PrajnaCapital [at] Gmail [dot]
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