Comprehensive Guide onTax-Saving Mutual Fund- ELSS Funds
If you are an investor looking for a platform that generates good, regular, or tax-free returns*In that case, ELSS funds stand out as an excellent starting point. Let's begin with what ELSS Funds are in the first place. What are ELSS Funds? ELSS Mutual Funds, or E quity L inked S avings S cheme Mutual Funds , are tax-saving mutual funds in India. These funds, categorized as equity funds, primarily allocate their assets to equity or equity-related products. Recognized as tax-saving plans, ELSS funds offer a significant advantage by allowing a tax deduction of up to Rs.1.5L from your annual taxable income under Section 80C of the Income Tax Act. For the amount above 1.5L are taxable at 10%, and there is no benefit of indexation provided. Choosing ELSS funds not only serves as a means to save taxes but also represents an equity-oriented investment strategy. The three-year lock-in period emphasizes a commitment to a mid-term investment horizon, contributing to the overall app...