Facebook TwitterLinkedInYoutubewhatsapp Start Planning for your Financial goals
Schedule Your Free Consultation
  • Skip to primary navigation
  • Skip to main content
  • Skip to primary sidebar
  • Skip to footer
Holistic investment planners, financial planning Chennai, Private wealth management Chennai

Holistic investment planners, financial planning Chennai, Private wealth management Chennai

Financial Planning chennai India, Private wealth management chennai India, Investment Advisory India, Systematic Investment Plan, Mutual Fund SIP, Mutual Fund ELSS, Tax Saving scheme

  • Home
  • About Us
    • Who we are & What we do
    • Services
      • Financial Road Map
      • Retirement Roadmap
      • Asset Allocation Plan
      • Webinar
      • Money Management
      • Wealth Management
    • In the Media
    • Testimonials
    • What Makes Us Different
    • How we can help you
    • Specialties
    • Honors and Awards
    • Vision & Mission
  • Resources
    • Blog
    • Articles
    • Podcast
  • Ideal Client
  • Contact Us

What every Tax Payer needs to know about Mutual Fund ELSS?

by Holistic Leave a Comment | Filed Under: Mutual Funds

What every Tax Payer needs to know about Mutual Fund ELSS?

Why would you want to use other tax saving investments, when you can invest in mutual fund ELSS?

Holistic Investment - ELSS funds

Mutual Fund ELSS is among the most potent tax saving options available with the salaried class in India, at the moment. There are several reasons for which Mutual Fund ELSS may be considered a niche product on offer for the tax-payer angling to save their precious moolah.

The advantages that Mutual Fund ELSS offers, gives it a clear edge over other tax savings options and makes it a potentially strong tax planning instrument in the hands of the taxpaying employee.

In order to understand Mutual Fund ELSS in a more succinct manner, a few basic things about this favored tax-saving option are presented in a FAQ format.

What is Mutual Fund ELSS?

The Income Tax Act permits exemption up to Rs. 1 lakh under Section 80C to salaried employees every year. In order to avail of this exemption, taxpayers have to invest in certain designated schemes specified.

Mutual Fund ELSS or Equity-linked Saving Scheme is one such option which offer tax saving benefits to the tax payer by investing the money in select equities.

How does Mutual Fund ELSS compare with other tax savings schemes?

The bouquet of tax savings schemes on offer are made up of a number of items like Life Insurance Policies, National Savings Certificates (NSC) and Public Provident Fund (PPF) investment schemes, to name a few. While these options may be solid safe investment bets, the lock-in period and the return that they offers may not be very attractive for all classes of tax-saver-investors.

What makes Mutual Fund ELSS a better option?

For the purpose of saving tax, employees may opt for such schemes as National Savings Certificates, and Public Provident Fund however these schemes have a fairly long lock-in period. In fact it is 5 years for NSCs’ and 15 years for PPFs’. In comparison Mutual Fund ELSS have a lock-in of three years making it a relatively more liquid tax-saving option.

Besides this, the returns or dividend incomes are tax free for the ELSS schemes whereas NSC income is taxable. The sale proceeds from the Mutual Fund ELSS schemes are also exempt from long-term capital-gains tax when sold after the mandatory lock-in period.

What other advantages are available for Mutual Fund ELSS investments?

If an investor regularly invests in ELSS schemes and for some reason is short of funds in a particular year, he can still invest by selling off his old ELSS investments which have crossed the lock-in period. The maximum amount of exemption of Rs.1 lakh as allowed by Income-Tax Act can be fully utilized by investing solely in Mutual Fund ELSS schemes.

The investor may however choose to invest in a diversified portfolio of PPF, Insurance policies and NSCs’ for tax-saving purpose as per his preference.

Does Mutual Fund ELSS guarantee assured returns?

Mutual Funds per se do not guarantee assured returns as the performance of a fund is dependent on the dynamics of the financial market. In fact past performance of a fund is also not a guarantee for future returns. The average return from mutual fund ELSS in the last one year is more than 12%.

What is the best way to invest in Mutual Fund ELSS?

The investor can either invest the total funds at one go or can opt for making monthly investments through SIPs (Systematic Investment Plans) .

What are the differences between Mutual Fund ELSS and other mutual funds?

Mutual Funds other than ELSS are usually open-ended, meaning one can invest at any time and exit at will. However for ELSS mutual funds there is a lock-in period of three years.

This period of lock-in can however provide an impetus to fund managers by offering them the liberty to invest for a period up to three years without having to think about returning the money before that.

The answers to the above questions could have made it very clear why Mutual Fund ELSS is an outstanding tax saving investment among the overall tax saving schemes.

If you are REALLY inclined to make this solid difference in achieving your financial goals by creating a financial plan, then I would suggest you to test-drive our services by opting for

Reader Interactions

Previous article: How an NRI can invest in Mutual Funds?
Next article: How to Calculate Mutual Fund Returns?

Comments

  1. D. M. Chakrabarti says

    December 24, 2018 at 1:39 pm

    How to calculate CAGR in the case of a Dividend Pay MF, say 10 years after the investment? Given,
    d1=investment date
    d2=present date
    NAV1= NAV on d1
    NAV2=NAV on d2 (after payment of dividends over the time)
    Initial investment=P1
    Present value=V2
    Dividend paid from d1 to d2= D
    Dividend reinvested=0

    NB: In case of pure Growth type MFs, Excell’s XIRR gives correct CAGR as published. But in case of Div-Pay MFs, none of the two formulas given in this article give correct result. Please help.

    Reply
    • Holistic says

      August 8, 2022 at 12:10 pm

      Please calculate IRR for Dividend Paying investments. That can give better analysis.

      Reply

Leave a Reply Cancel reply

Your email address will not be published. Required fields are marked *

Primary Sidebar

Client Login

Recent Posts

  • SBI Life Smart Annuity Plus: Good or Bad? A Comprehensive Analysis and Review
  • Unwrapping Mutual Funds: A Beginner’s Guide
  • LIC Bima Shree Review – Good or Bad Investment Option?
  • LIC New Money Back Policy 25-year Plan – Plan 921 Review: Good or Bad?
  • Tata Technologies IPO Review – Should You Invest?
Lingesh MMG
Lingesh MMG
20. September, 2023.
Na eppo tha financial goal la enna therunju kitta..enaku full support panna thuku thank you..🥰 friendly nalla pesuninga...
Ravi L
Ravi L
15. August, 2023.
Very knowledgeable and professional team, guided me with the precise financial solutions and timely suggestions.
Hardik Dave
Hardik Dave
5. July, 2023.
Holistic Investment is really nice and trust worthy financial planner. They plan things in realistic manner and also consider future dimensions of items also. They are always available for small or big queries, and also share knowledge and help you become more financial literate, and take right decisions in all financial matters.
Dr. Padmakar Wagh
Dr. Padmakar Wagh
27. June, 2023.
Mr Ramalingam who is the Director of Holistic investments has a excellent financial planning knowledge, the entire Holistic team has been very helpful in my financial planning journey and execution. This is my third year of financial planning with Holistic investments and so far I am satisfied with the progress I have made.
Binamra Dash
Binamra Dash
13. June, 2023.
Very knowledgeable team. Guided me properly with my concerns.
Murugan Bala
Murugan Bala
16. May, 2023.
I have been investing through Holistic for the past 4 years and my experience with them have been really good. The team of Rajan and Ramalingam doing excellent services in meeting my needs through proper guidance on investment options customized. Theya re always available on any specific needs time to time.I would recommend their services to my friends and colleagues too.
Neeraja R K
Neeraja R K
15. May, 2023.
Working with holistic investment planners was a really wonderful experience for me. For me the entire team had been very supportive in all ways. Their working strategy is well planned and methodical. They always keep me informed and updated about my investments, so that i can take informed decisions. The team first helps us understand the basics of investments, then they collect data, work with the data and then provide investments solutions according to our goals which i find it the best. Good luck to the entire team.
deepika kulkarni
deepika kulkarni
21. April, 2023.
We have availed holistic service from last couple of years and are very happy with our decision. Their systematic approach has helped us plan our finances and meet our goals. They provide very comprehensive and detail plan and resource management every 6 months which ensures we are on right track to achieve our goals. Rajan and Ramalingam from holistic are always there to help us with our queries. They have also accommodated any changes to our goals or resources mid year in a professional manner.
Ashook Panneerselvam
Ashook Panneerselvam
21. March, 2023.
For the past year, I have been interacting with Holistic Investment. I frequently read Nanayam Vikatan, which is a publication owned by the Vikatan family, and I was impressed by their financial advice. My brother also suggested holistic investing, and he also got excellent financial advice. Holistic Investment follows a methodical approach that I really liked because they first fully understand our financial situation "As Is," which includes "Assets" and "Liabilities," as well as our short-, mid-, and long-term goals, on the basis of which they provide a detailed plan on how to achieve our goals for which they are recommending various investment options. Even in the investment advice, why do they suggest particular mutual funds and what is the justification behind it, which adds transparency to the client. One essential factor is that they are always available. Even if I needed to make some urgent financial decisions, they were very helpful and kind to answer my questions via phone calls, WhatsApp messages, and emails. I was very happy with their service. Periodic reviews are also crucial, even though I have forgotten that they occur once every three months, and I also intend to renew this year.
Mahesh S
Mahesh S
19. February, 2023.
I have availed Holistic investment service for last 1yr against my early retirement decision. they provided me comprehensive detailed report how to move ahead with my existing resources. moreover, they are available to me whenever i have any doubt.. highly recommend others to avail their service
Google rating score: 4.5 of 5,
based on 104 reviews

Google Reviews

Lingesh MMG
Lingesh MMG
20. September, 2023.
Na eppo tha financial goal la enna therunju kitta..enaku full support panna thuku thank you..🥰 friendly nalla pesuninga...
Ravi L
Ravi L
15. August, 2023.
Very knowledgeable and professional team, guided me with the precise financial solutions and timely suggestions.
Hardik Dave
Hardik Dave
5. July, 2023.
Holistic Investment is really nice and trust worthy financial planner. They plan things in realistic manner and also consider future dimensions of items also. They are always available for small or big queries, and also share knowledge and help you become more financial literate, and take right decisions in all financial matters.
Dr. Padmakar Wagh
Dr. Padmakar Wagh
27. June, 2023.
Mr Ramalingam who is the Director of Holistic investments has a excellent financial planning knowledge, the entire Holistic team has been very helpful in my financial planning journey and execution. This is my third year of financial planning with Holistic investments and so far I am satisfied with the progress I have made.
Binamra Dash
Binamra Dash
13. June, 2023.
Very knowledgeable team. Guided me properly with my concerns.
Murugan Bala
Murugan Bala
16. May, 2023.
I have been investing through Holistic for the past 4 years and my experience with them have been really good. The team of Rajan and Ramalingam doing excellent services in meeting my needs through proper guidance on investment options customized. Theya re always available on any specific needs time to time.I would recommend their services to my friends and colleagues too.
Neeraja R K
Neeraja R K
15. May, 2023.
Working with holistic investment planners was a really wonderful experience for me. For me the entire team had been very supportive in all ways. Their working strategy is well planned and methodical. They always keep me informed and updated about my investments, so that i can take informed decisions. The team first helps us understand the basics of investments, then they collect data, work with the data and then provide investments solutions according to our goals which i find it the best. Good luck to the entire team.
deepika kulkarni
deepika kulkarni
21. April, 2023.
We have availed holistic service from last couple of years and are very happy with our decision. Their systematic approach has helped us plan our finances and meet our goals. They provide very comprehensive and detail plan and resource management every 6 months which ensures we are on right track to achieve our goals. Rajan and Ramalingam from holistic are always there to help us with our queries. They have also accommodated any changes to our goals or resources mid year in a professional manner.
Ashook Panneerselvam
Ashook Panneerselvam
21. March, 2023.
For the past year, I have been interacting with Holistic Investment. I frequently read Nanayam Vikatan, which is a publication owned by the Vikatan family, and I was impressed by their financial advice. My brother also suggested holistic investing, and he also got excellent financial advice. Holistic Investment follows a methodical approach that I really liked because they first fully understand our financial situation "As Is," which includes "Assets" and "Liabilities," as well as our short-, mid-, and long-term goals, on the basis of which they provide a detailed plan on how to achieve our goals for which they are recommending various investment options. Even in the investment advice, why do they suggest particular mutual funds and what is the justification behind it, which adds transparency to the client. One essential factor is that they are always available. Even if I needed to make some urgent financial decisions, they were very helpful and kind to answer my questions via phone calls, WhatsApp messages, and emails. I was very happy with their service. Periodic reviews are also crucial, even though I have forgotten that they occur once every three months, and I also intend to renew this year.
Mahesh S
Mahesh S
19. February, 2023.
I have availed Holistic investment service for last 1yr against my early retirement decision. they provided me comprehensive detailed report how to move ahead with my existing resources. moreover, they are available to me whenever i have any doubt.. highly recommend others to avail their service
Google rating score: 4.5 of 5,
based on 104 reviews

Footer

  • Articles
  • Gallery
  • Ideal Client
  • Jobs(Full Time)
  • Podcast
  • Services
  • Testimonials

Connect With Us

Holisticinvestment.in
10/15, Second Cross Street,
Seethammal Extn.,
Teynampet,
Chennai – 600 018,
INDIA.

Copyright © 2022. Holisticinvestment.in | All rights reserved.    Cared with ❤ by T-Square Cloud 1

×