How much return will I get from ELSS?

How much return will I get from ELSS?

Comparison of ELSS With Other Tax-Saving Instruments

Investment Returns Lock-in Period
Public Provident Fund (PPF) 7\% to 8\% 15 years
National Savings Certificate 7\% to 8\% 5 years
National Pension System (NPS) 8\% to 10\% Till Retirement
ELSS Funds 15\% to 18\% 3 years

Do mutual funds give guaranteed returns?

Mutual funds don’t guarantee capital protection or fixed returns. However, this is a good thing as mutual funds would be a poor investment product if they did. The purpose of investing in mutual funds is to earn higher returns than what traditional investment options offer.

Does sip give guaranteed returns?

Many of them believe that investing through SIPs guarantee returns. It is not true. SIP is an investment option that allows you to invest in mutual funds, typically in equity mutual funds, periodically.

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What is the return on investment for ELSS?

ELSS v/s Other Tax-Saving Investment Instruments Tax-Saving Investment Options Lock-in Period Return Risk Profile ELSS 3 years 10\%-12\% High Fixed Deposit 5 years 6\%-7\% Low Public Provident Fund 15 years 7\%-8\% Low National Savings Certificate 5 years 7\%-8\% Low

When is the best time to invest in ELSS?

Investments in ELSS can be made at any time during the year. Most often, however, ELSS investments see a spike in popularity just before the tax filing season, as Indians scramble to reduce their tax liability by any means possible. Tax saving mutual funds get very popular around this time.

What is ELSS (an equity linked savings scheme)?

An Equity Linked Savings Scheme (ELSS), popularly known as a tax-saving mutual fund, is the only mutual fund which qualifies for a tax deduction of up to Rs. 1.5 lakh annually under Section 80C of the Income Tax Act. As the name suggests, it is a type of open-ended equity fund.

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What is the minimum lock-in period for ELSS?

ELSS has a minimum lock-in period of 3 years to make use of tax benefits. The fund can be allowed to grow beyond 3 years as well in order to generate maximum returns. Where to start investing in ELSS?