ELSS from the full form is self –explanatory is basically a mutual fund which enables you to avail tax deductions. Under section 80 C there is other saving alternatives. This is basically mutual funds that people invest all around the year, but with ELSS it is a last minute decision when you do not have sufficient funds to showcase for a prevailing fiscal year.
The options available when you invest in ELSS?
A growth option when the holder is not entitled to any form of dividends. The holder would go on to avail the benefits at the end of stipulated time period. Your NAV will appreciate and this would increase your profits. The prevailing market conditions have a definite role at this juncture. So the chances are it may or may not work for you or chances are profits could be great.
The portion where an investor can avail timely payments rather than waiting till the end is termed as dividends. A positive point about dividend is the amount is free from taxation by the government of India.
Option of dividend reinvestment
This is a final option that an ELSS holder is going to receive. Here the policy holder has an option of handing back the dividend to increase NAV value. This works out to be a good option when the market is performing credibly at the end of 3 year period. In the long run you will gain substantially and the amount withdrawn would be on the higher side
How to invest in ELSS is a simple procedure. You need to comply with PAN card details along with your KYC form. There are a couple of ways by which you can undertake ELSS, one is you can do everything all by yourself or you could even appoint an agent. A final option would be that you can nominate someone to invest on your behalf. But the risk is if you authorize any person they are going to choose funds which offer the highest rate of return in comparison to any time in the near future. Their objective would be to earn maximum amount of profit from the dividends they receive.
Apart from this you can invest in ELSS online as just you need to explore the option. Just register yourself in any online website and you are ready to undertake the process of investing in direct mutual fund app. There is no need to pay any additional charges and you do not need to comply with any terms or conditions.
To conclude ELSS presents a perfect opportunity to earn some extra bucks. It is a combination of stability, tax savings and growth. The point of consideration is to avail the correct guidance and advice. If provided with the right advice you might be able to figure out the top performing ELSS funds and it is possible to classify the investments on the same.
Keep in mind when you are investing in ELSS you need to undertake a proper research.