Tax Saving Mutual Funds and Lock-in Period: What You Should Know

tax saving mutual fund (ELSS) are one of the best investment options for individuals looking to reduce their taxable income while building long-term wealth. ELSS allows you to claim deductions of up to ₹1.5 lakh under Section 80C, significantly lowering your tax burden. With a lock-in period of just three years, ELSS offers better liquidity compared to traditional tax-saving options like PPF and NSC. These funds primarily invest in equities, which have historically provided higher returns over the long run. Investors can start with a lump sum investment or choose the SIP route for disciplined investing. Additionally, ELSS provides the benefit of rupee cost averaging, helping to mitigate market volatility. If you’re looking for an investment that combines tax benefits with wealth creation, ELSS is the ideal choice. Start investing today and secure your financial future while maximizing your tax savings.

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