Why ELSS?
A. Low Lock in Period
B. Earn Higher Return
C. Tax Free Return
D. No Annual Commitment
| Product | Return % Per Annum | Tax Free Return | Lock-in Period in Years |
|---|---|---|---|
| ELSS ( Equity Linked Savings Scheme) | 12-15% | Yes | 3 Years |
| ULIP ( Unit Linked Insurance Plan) | 10-12% | Yes | 5 Years |
| Tax Savings Fixed deposit | 7% | Taxable | 5 Years |
| Life Insurance | 5-6% | Yes | 5-30Years |
| NSC National Savings Certificates | 8% | Taxable | 5 Years |
| PPF Public Provident Fund | 7.75% | Yes | 15 Years |
Last 5 Years ELSS category return is more than 18% Per Annum
| Fund Name | Past Performance ( %) | Investment Made On 1st Jan 2015 | Value As On 31 Dec 2017 | ||
|---|---|---|---|---|---|
| 1 Year | 3 Year | 5 Year | |||
| Aditya Birla Sun Life Tax Relief 96 (G) | 19.64 | 18.14 | 21.49 | ₹ 150,000 | ₹242,336 |
| Axis Long Term Equity (G) | 16.53 | 14.96 | 22.34 | ₹ 150,000 | ₹217,378 |
| DSP Blackrock Tax Saver (G) | 16.57 | 16.57 | 20.84 | ₹ 150,000 | ₹236,799 |
| Reliance Tax Saver Fund (G) | 20.31 | 13.54 | 21.41 | ₹ 150,000 | ₹219,055 |
NB: Returns over 1 year are annualized
Tax saving in ELSS funds
Investment made up to ₹1.5lacs in Tax-saving ELSS Mutual funds is eligible for tax deductions under Section 80 C.
Lock–in Period
Investment made in ELSS is locked for 3 years from the date of investment.
ELSS Invests in Equity
ELSS Mutual Fund schemes invest in individual equity stocks of companies in equity market.
SIP or Lump sum
You can invest in ELSS in Lump sum or as SIP, the lock in starts from the date of investment.
Tax Saving
When you invest in ELSS mutual funds, the amount you've invested gets reduced from your taxable income. So if you invest ₹.1,50,000, and if you are on the highest slab, your taxes payable go down by ₹.46,350.
Last Date
The last day for making an ELSS investment is 31st March 2018 to avail tax exemption for financial year 2017-18, and produce the proofs of investment.