49% return given in one year, tax exemption will also be available, this scheme is icing on the cake
New Delhi. Now less than 3 months are left for the end of the financial year 2024-25. However, it is advisable to plan at the beginning of the financial year to save tax. But, if you haven’t done it yet, you shouldn’t be late. If you want good returns on your investment along with saving tax, then you should invest in Equity Linked Savings Scheme (ELSS Mutual Fund). Notably, some ELSS mutual funds have given returns of up to 49% in the last one year. Equity Linked Savings Scheme (ELSS) lock-in period is only 3 years, which is less than other tax saving options. Investors’ money is locked for 5 years in Tax Saving FD and 15 years in Public Provident Fund.
Tax exemption under section 80C is available on investments up to Rs 1.5 lakh in ELSS. Financial experts say that if the ELSS fund is performing well and investments are flourishing, investors should stay in the schemes for longer to reap maximum returns. A lump sum investment can also be made in ELSS and money can also be invested through SIP. ELSS is a type of mutual fund, which mainly invests in equity or equity based products. It has higher returns than bank FDs. Investment in ELSS is subject to market risk.
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Benefit of lock-in
Money in ELLS is blocked for three years. This is of great benefit. Disciplined investing over the long term gives you the benefit of compounding, which further helps in wealth creation. End of 3 year lock-in does not mean you have to exit the fund, you can extend it further.
These ELSS funds gave huge returns.
Some ELSS funds have given excellent returns. Motilal Oswal ELSS Tax Saver Fund has given an average return of 49% in one year, 28% in three years and 25.98% in five years. SBI Long Term Equity Fund has had a one year average return of 28.78%, three year average return of 24.78% and five year average return of 25%. ITI ELSS Tax Saver Fund has returned 25.82% in the last one year, 21.65% in three years and 20.17% in five years.
(Disclaimer: The information given here is based on mutual fund performance. If you want to invest in any of them, consult a certified investment advisor first. News 18 of your profit or loss. will not be responsible for.)
Tags: money making tips, Mutual fund, Tax savings, Tax saving options
First Publication: January 5, 2025, 12:12 IST
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