Business
Investments in ELSS qualify for tax deductions under Section 80C of the Income Tax Act, allowing investors to reduce their taxable income by up to ₹1.5 lakh annually.
ELSS funds primarily invest in equities, offering the potential for higher returns compared to traditional savings instruments due to their equity market exposure.
ELSS funds have a mandatory lock-in period of 3 years, during which the invested amount cannot be withdrawn. This encourages long-term investing and helps in wealth accumulation.
These funds invest in a diversified portfolio of stocks across various sectors and industries, which helps in spreading risk and potentially enhances returns.
ELSS funds are managed by professional fund managers who make investment decisions based on market research and analysis, aiming to achieve optimal returns.
Investors can invest in ELSS through SIPs, allowing them to contribute a fixed amount regularly. This approach helps in averaging out the cost of investment.