ELSS: Is it a viable option for investment?


Everyone loves to have accurate financial planning that can help save a good amount and earn a handsome return on the investment made. For those, who fall in the tax bracket saving of the amount that has to be paid on, matter a lot. The government offer various options with the help of which one can save tax to a certain amount. The ELSS is one of such tools that have a combination of saving on the tax as well as earning a return on the amount invested. Many of the asset management companies are out there in the market that proves helpful to the investors who are interested in investing in ELSS. Here you will come to know about how to invest in ELSS.

What is ELSS?

ELSS means Equity Linked Saving Scheme where the amount invested by the investors is collectively invested in the shares of various companies and expert fund managers are appointed to monitor the fund invested in the market. Different companies have different policies of investing in different segments and the managers follow the same in a way that can help them earn good return for the investors who have invested in their funds. The most lucrative part of this investment is one can save tax on the amount invested in this scheme. However, here one must note that one cannot withdraw the amount of the same for a some number of years which is known as lock-in period. Usually, the lock-in period for the ELSS is of 3 years. One can save income tax with the help of ELSS up to 1,50,000.

How to invest?

How to invest in ELSS is a common question that haunts a number of investors in the market. The AMCs have made the process of investment much simpler these days, and hence one can easily go for this option. The investor who wants to invest in ELSS can have two options with the help of which he can invest. The first option is investing by offline mode where he can either contact an agent or go to the office of the concerned  AMC where he can meet the executive and fill up the form. He needs to have KYC done where he needs to provide the documents such as PAN card, cancelled cheque and other required documents. He also needs to provide the cheque of the concerned investment amount. Here also one has options to pay the amount in a lump sum or with the help of a SIP.

In another option, one can check the website of the concerned AMC where he can find the option of online investment also. The investor needs to create an account first and can start investing after that only.  Here one needs to provide a few details and offer the soft copy of the documents to invest the amount. He can select the fund and make the payment online only. The receipt of the same can be availed by the investor on his email, and the receipt of the payment is also sent on mail as well as mobile.

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