The benefits of investing in ELSS funds in India are numerous. These mutual funds in India are considered by many as one of the best ways of investment. The main reason for this is that it promises higher returns than other alternatives bonds and funds. Another good thing about the investment in ELSS funds is that they provide opportunities for people to diversify their investments. This is possible since the returns are guaranteed, giving them the feeling that they will be able to gain some amount from the investments.
Let’s discuss all of these benefits of investing in ELSS funds in detail:
- Eases Owning Real Estate Properties
One of the major benefits of investing in ELSS funds in India is that it can provide you with the chance of owning real estate properties that are less expensive compared to those bought using conventional methods. When you invest in section 80c tax-exempt mutual funds, it is possible that you will earn only a certain percentage from each and every property. This percentage is lower compared to the returns on conventional investments.
- Calls for No Lock-in Period
When you invest in the ELSS mutual funds in India, there is no lock-in period. The funds can be invested at any time you want as long as the advisor has not initiated a lock-in period. You can decide whether or not to lock in your returns during the initial period. There is also no statutory tax rate for the ELSS.
- Makes Your Enjoy Tax Deduction
When you are counting your returns on your investment in the ELSS through the SIP calculator, you will be glad to avail significant tax deduction. If you invest in ELSS funds, the amount of the tax deduction you enjoy will depend on the tax rate at the end of the life of the fund. The premium you had paid will be tax-free as well.
- Facilitates Lower Risks Associated
The most prominent advantage is that it does carry the lowest possible risk. The long-term investment in ELSS funds offers a considerable level of safety to the investors. The other perks of investing in ELSS funds include the tax benefits and the fact that the management charges are almost non-existent. You should consider all these factors before investing in ELSS funds.
The Final Say
The benefits of investing in ELSS funds are many, and you should take them into account when making investment decisions. As compared to the alternative conventional methods of investing in India, the concept of the ELSS funds come up with better offerings. So, better up your understanding regarding the same, come up with more informed investment decisions and choose the best for yourself.