ELSS is a mutual fund scheme and is quite similar to the diversified equity fund of a mutual fund. As the name suggests, the scheme primarily invests in the equity market by buying equity stocks of companies listed on the stock exchanges. The units of this scheme are offered at the net asset value (NAV). The NAV is announced for all business days and keeps changing depending primarily upon the movement in the prices of stocks held in the portfolio of the scheme in relation to market fluctuations.
Is It a Better Investment? Should You Try It?
If the direct tax code (DTC) proposed by the Government comes into effect, your most dependable tax-saving option – Section 80C of Income Tax Act – will see amendments. While the DTC includes a proposal to increase the eligible deduction under Section 80C, ELSS may not remain eligible to be a tax-saving instrument, thus leaving you with fewer marketlinked investment options. Hence, the advice for the time being is that you may invest in it if before it goes off the taxsaving list, pray for your stocks to do better, and get higher returns on investments.
Most of you make an investment keeping in mind your age, income, expenses, and nearness to your goal. You plan your tax-saving investment portfolio accordingly. A simple advice to any investor is that if they are retiring from work sooner, then their investments should not be market-linked. However, if one has some time before retirement, they may take a little risk to chance upon a few higher returns.
Hence, if you are young with a considerable income that allows you to take a risk, you may invest
A simple bit of advice to any investor is that if they are retiring from work sooner, then their investments should not be market-linked. However, if one has some time before retirement, they may take a little risk to chance upon a
few higher returns.