Mutual Funds are forever.
Don’t be a Tax Bhola
AXE YOU TAX NOW
Equity-linked savings scheme popularly known as ELSS are close-ended, lock-in period of 3 years diversified equity schemes offered by mutual funds in India. They offer tax benefits under the new Section 80C of Income Tax Act 1961. ELSS can be invested using both SIP and lump sums investment options.
Invest in tax-saving funds (ELSS) – Mutual Fund Tax Saver Plan and
Save Tax
Save up to:
- If you Fall in 20.8% Slab and invest in ELSS and you invest upto Rs. 1,50,000 /- you can save upto Rs. 31,200 /-
- If you Fall in 31.2% Slab and invest in ELSS and you invest upto Rs. 1,50,000 /- you can save upto Rs 46,800 /-
Build Wealth
- Potential to create wealth since money is invested in equities.
- Highest returns among other 80C options (Save Tax + Build Wealth)
Low Lock-In Period
Lowest Lock in Period amongst all 80C Options
- PPF – 15 Years
- NSC – 5 Years
- Tax Saving FD – 5 Years
- Life Insurance – 5 years
- ELSS Mutual Fund – 3 years
Comparison between ELSS and Other Tax-Saving Methods
There are a plethora of savings schemes to help you build your wealth, such as FD, PPF and NSC to name a few. But the returns from these schemes are taxed. This is where ELSS stands out with its dual-benefit – its returns are generally higher & partially taxable (Returns are not taxable until 31 March 2018. After 31 March 2018, returns will be taxable at a concessional rate of 10% if gains are over and above Rs. 1 lakh. This coupled with a mere lock-in period of 3 years is all the more reason for you to invest in ELSS now.
| Investment | Returns | Lock-in Period | Tax on Returns |
| 5-Year Bank Fixed Deposit | 6% to 7% | 5 years | Yes |
| Public Provident Fund (PPF) | 7% to 8% | 15 years | No |
| National Savings Certificate | 7% to 8% | 5 years | Yes |
| National Pension System (NPS) | 8% to 10% | Till Retirement | Partially Taxable |
| ELSS Funds | 15% to 18% | 3 years | Partially Taxable |
Section-80C of the Indian Tax Act allows deduction upto Rs. 150,000 from your total annual income. Yet, many taxpayers find a major chunk of this getting consumed by mandatory deductions.
Why Invest in ELSS with US?
Mutual fund investments are subject to market risks. Please read the scheme information and other related documents carefully before investing. Past performance is not indicative of future returns. Please consider your specific investment requirements before choosing a fund, or designing a portfolio that suits your needs.