Important Details About Equity Linked Savings Scheme (ELSS)
Equity-linked savings scheme or ELSS is a tax saving method which people recognize more than any other saving method. It is actually said to be mutual funds that are bought up with the aim to save taxes in an easy way. The Equity linked savings scheme has been in trend for many years and provides with an effective way of tax handling. Payment of taxes, consider being a burden on the head of people. Although taxpayers are those who have higher incomes still many of us avoid paying taxes. The following scheme here can be proven as the best option for saving your taxes. It belongs to the mutual fund categories which serve you with several benefits at a time.
The ELSS mutual funds are actually best as they deliver several advantages to the people. They have been available with various features that may compel you to choose it as tax saving option. Here I am lighting up few of the important features of this mutual funds that can help you learn more about it.
The first and the major feature of equity mutual funds is the tax advantage. The investors who link their money with equity can get at least 1.5 lakh tax deduction on total income tax per financial year. Filing equity can help you with reduction of the tax burden to an extent.
Investment with small amount
People can also invest up to small amounts in equity as it is one of the major benefits that satisfy people a lot. The investments can help you get the better returns in future. The investment amount that you can park in equity is minimum 500 rupees. For the indulgent in secure investment, you can simply go for the SIP plans.
No limit for maximum investment
Next major feature of equity that makes it unique is that there are no limits for maximum investment. The investors do not have any limit on the maximum investment on the equity mutual funds. One can simply invest as much amount as they want just in order to get better benefits.
The major benefits that you are going to experience while investing in equity mutual funds are the tax-free returns. The investors earning interests or the dividends are not require to pay any amount of tax on all of them.
If you are investing in equity stocks and funds, the equity mutual funds assist you in every manner to experience the growth of capital for the long term. The capital appreciation benefits can be experienced by investors for a longer tenure. One is going to get various chances to speed-up their profit on capitals by getting many chances.
These mutual funds are benefitting investment schemes that have been available since long ago. It provides various features along with its schemes which can help you get tax return in an easy way. Above mentioned are few of the top features of these mutual funds which are of great use. If you wish to experience such benefits, file your scheme now.