Is it a good time to start a SIP in ELSS?
When you’re looking to invest your money, there are two factors you take in to consideration. Return on investment and tax benefits. Everyone’s looking for the maximum return on investment and minimum taxable income. SIP are a most popular go to form of investment for all investors. Here’s everything you need to know about SIP in ELSS.
ELSS are the tax saving Mutual funds. Investments of up to Rs 1.5 Lakhs in ELSS funds are eligible for 80C deductions. What this means is, when you invest in securities eligible for 80C deductions, then your taxable income is reduce by that amount. This brings down your tax burden and you end up saving on tax.
Now ELSS are a great investment product because you can align your financial goals with your ELSS investments. How this works is as follows:
- ELSS being Equity Funds can easily generate a return of 15% or more annually.
- The capital gains arising are completely tax exempt too.
This works well for saving tax and creating wealth.
So yes its a good idea to start an SIP in ELSS.
Starting an SIP also reduces the stress that arises from taking last minute decisions on where and how to invest.
Just remember, the assessment year is from 1st April 2017–31st March 2018. So if you have not done your 80C investments yet, then your SIP contributions of only 3 months that is Jan-Mar will be counted for 2017–18 period.
You can check out this top performing ELSS fund at Mintwalk for maximum gains.