Tax Saving Mutual Funds
- Save taxes up to Rs 46,800
- Lowest lock-in of 3 years
- Highest returns out of other 80C options
- Monthly SIPs investing is recommended
Why is ELSS the Best Option for Tax Saving
Equity Linked Saving Scheme or ELSS refers to the tax saving mutual fund where Rs. 1.5 lakh could be saved in a financial year under Section 80C. With the ELSS you can save up to ₹46,800 In Taxes
Lowest Lock-in of 3 Years
2x higher interest rates than FD/PPF
Option to invest Monthly (SIP)
Invest as little as ₹500
Comparison between ELSS and other tax-saving methods
Several savings schemes could help you increase your wealth, such as PPF, FD, NSC, etc. But the returns made from these schemes are taxed. This is one of the stands out the benefit of ELSS as its returns are mostly higher & partly taxable (Returns are not taxed until March 31, 2018). After March 31st, 2018, the returns will be taxed at a reduced rate of 10% if profits are more than Rs. 1 lakh. This concession along with a lock-in period of 3 years is the specific reason why you should invest in ELSS.
|Investment||Returns||Lock-in Period||Tax on Returns|
|5-Year Bank Fixed Deposit||6% to 7%||Five years||Yes|
|Public Provident Fund (PPF)||7% to 8%||15 years||No|
|National Savings Certificate||7% to 8%||Five years||Yes|
|National Pension System (NPS)||8% to 10%||Till Retirement||Partially Taxable|
|ELSS Funds||15% to 18%||Three years||Partially Taxable|
In the Indian Tax Act Section-80, it gives room for the deduction up to Rs. 150,000 from your total annual income. This limit was further increased in the 14-15 fiscal. Many taxpayers realize that mandatory deductions consume a large percent.
1.5 Lakh Investment will yield two-fold in 5 years
Lowest lock-in period of 3 years
Why Invest in ELSS with CompanyVakil
With ELSS mutual funds you will get the double benefit of saving on taxes and a higher rate of interest related to that of the banks FD, NSC, PF and other options of tax saving investment.
Easy to Invest
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Invest in Best ELSS Tax Saving Mutual Funds
Invest only in the best tax saving mutual funds in India.
|FUND||3Yr. Returns||5Yr. Returns|
Reliance Tax Saver Fund
DSP BlackRock Tax Saver Fund
Axis Long Term Equity Fund
Aditya Birla SL Tax Relief ’96
SBI Magnum Taxgain Scheme
ICICI Prudential Long Term Equity Fund
FAQs (Frequently Asked Questions)
As a tax-paying citizen, the Indian Tax Act Section-80 gives you some respite – a deduction of up to 150,000 from your total annual income.
What are ELSS funds?
ELSS funds are tax saving mutual funds which are generally invested in equity schemes.
What is the lock-in period?
The lock-in period is three years.
- What is the maximum tax enjoyed by investing in ELSS every year?
According to section 80C, one can enjoy up to Rs 45,000 in tax benefits by investing up to Rs 1.5 lakh annually in ELSS. You are free to invest in excess of Rs 1.5 lakhs in ELSS.
- Why invest in ELSS?
ELSS has an advantage over other tax saving schemes like FDs, NPS, etc. It has the lowest lock-in period and higher returns than other tax-saving schemes.
- Who should invest in ELSS?
Anyone who desires income tax reduction through section 80C tax-saving schemes. Those who are prepared to take the risk to make a long-term investment to reap the benefits.
- Is there any tax associated with ELSS?
Since the lock-in period is three years, the profit is deemed as long-term profit and taxed at 10% for profit over 1 lakh rupees.
- What are equity funds?
Equity funds are schemes which invest in various companies shares of different market capitalization.
- Should I choose SIP or lump sum?
A SIP enables you to regularly invest a fixed sum in any mutual fund(s) you desire. A lump sum refers to a one-time investment made in a mutual fund(s). SIP has few advantages:
- It enables you to make little investment every month without the stress bulk payment
- Investing all through the year averages investment cost – in the end, you won’t be paying too much per unit
- Makes you financially disciplined
- How to invest in a SIP on CompanyVakil?
The process is straightforward on CompanyVakil.
Step 1: Choose the fund(s) and the monthly amount you wish to invest
Step 2: Provide your details and initiate payment for the first month
Step 3: Activate SIP payments for the remaining months through one of the three methods we offer
- Why invest through CompanyVakil?
CompanyVakil is very simple and easy to use. We make things easy for you as we make all the findings to offer the best-performing mutual funds chosen by professionals. It doesn’t take up to 5 minutes to invest in CompanyVakil.
- How to invest in Mutual funds at CompanyVakil?
The process of investing is straightforward.
Step 1: Choose the fund(s) and the desired monthly investment amount
Step 2: Provide your details
Step 3: Make a payment, and that is all
- Is KYC necessary for CompanyVakil?
KYC is necessary for all financial institution. If you are investing through CompanyVakil, you are required to do your KYC just once. The same KYC will be used for any subsequent investments.
- How to do KYC on CompanyVakil?
KYC verification through CompanyVakil is straightforward. You can validate your KYC by:
Using OTP sent to the mobile number you used when registering your Aadhaar OR By scanning and uploading the required documents