Tax Benefit: Investors can avail tax benefit under Section 80C of up to Rs.46,800 by investing in ELSS.
Lowest Lock-in Period: ELSS provide the lowest lock-in period of 3 years as compared to other saving schemes like NPS, PPF etc.
Lower Tax on Gains: Investments in ELSS are made for long term (at least 3 years). Accordingly, Long Term Capital Gains Tax is applicable @10% as against other funds where Short Term Capital Gains Tax might be applicable @15%.
Higher Returns: Since ELSS invest in Equities, they usually provide higher returns than other tax saving schemes available.
Professionally managed: These are managed by fund managers who have expertise in selecting the right investment opportunities. Thus, it saves the investor’s time and effort of researching.
Capital Appreciation: If there is an increase in the price of shares of the fund, it will lead to an increase in the invested amount, leading to capital appreciation.
Convenience: The investor may either invest lump sum amount or through Systematic Investment Plans (SIPs) in ELSS, as per his convenience.
Affordability: Anyone can start investing for as little as Rs.500 in the fund.
Diversification: An ELSS fund invests in various types of equity shares, lowering down the risk factor.
