Unlocking Tax Saving (ELSS) Mutual Funds in Just 2 Minutes!

“The best things in life are tax-free”

Is one of the most renowned quotes which are known by all but followed by none. Taxpaying is like that unwanted guest whom you don’t like at all but still have to greet them with a smile!

In case of saving taxes combined with high-return performing investments, the best solution is to invest in Tax Saving ELSS Mutual Funds. And, we at Choice, tend to make this simple even for a lay-man by giving them a list of a well-researched and smartly-planned basket of top performing ELSS funds.

ELSS Funds, the well-known tax saving investment, which comes under Section 80C of the Income Tax Act, provides an exemption from paying taxes on income up to a maximum of Rs.1.5 Lacs. Basically, if someone wants to save taxes all they need to do is invest in tax saving ELSS Funds & the amount is deducted under Section 80C of the Income Tax Act.

Now, let’s understand Equity Linked Savings Scheme in a more detailed and simplified manner:

“Haste makes Waste so it’s better to do the work before the taxman knocks your door and you don’t end up making hasty decisions.”

1. It’s better to invest in ELSS and save your tax from the start of the year rather than investing in any other tax saving instruments at the end of the year in haste or end up paying taxes.
2. ELSS not only helps you to save taxes but also gives you an opportunity to grow money through returns on your investment.
3. Compared to other tax saving instruments, ELSS has a short lock-in period i.e. just over 3 years.
4. In ELSS there is no limit to invest nor there any specific age requirement.
5. One can start investing in ELSS Funds with as low as Rs.500 per month.
6. One can also opt for the dividend option; by opting for this option the investor can gain even during the lock-in period.

Imagine ELSS like a bucket of money where you keep on safeguarding your savings. This savings act as your investment and give you monetary returns on them. This pool of money that you have in your bucket cannot be charged by the IT department for taxation. And the returns you earn maybe 30% or higher also in a year.

Save your taxes on the go and earn compounded returns on them. Choice recommends non-biased Top 10 ELSS Mutual Funds for you to invest in. These ELSS Funds are researched, analyzed by the Choice team as per their historical performance, market capitalization, standard deviation, etc. and then recommended.