The tax benefit is one of the most important reasons why the users look for the tax saving FDs and Equity Linked Savings Scheme (ELSS for short). The Indian Income Tax department relaxes the tax payee to get financial benefits of up to 1.50Lakhs under section 80C and the buyers have these two very useful and easy to use options to get the said tax rebate. In case you are also looking to save your hard-earned money and want to use legal and authentic ways to get the relaxation, then investing in the ELSS would be a perfect way to save your money in the easiest way.
In this article, we are going to discuss, the various benefits of the investing in the ELSS and most importantly, how to invest in ELSS for those readers who haven’t invested money in any other means and are new to tax saving investments. So, let’s get started.
Benefits of choosing the ELSS over other tax saving schemes
First of all, let’s talk about the benefits of the ELSS and why you should prefer buying an ELSS over the tax saving Fixed deposits. Although there is a wide range of benefits including the tax benefits, we will focus on the three best benefits and reasons that make ELSS a better choice. So, go through them, and if you haven’t planned for the tax benefits, we would advise you to find the best ELSS for yourself.
- Relatively lower lock-in period than other tax saving schemes
- Higher returns
So, if you were looking for any of the above-listed benefits, then you should invest your money to ELSS instead of other schemes.
How to invest in ELSS to get the maximum returns and tax benefits
Now, when you are aware of the major benefits of investing money in ELSS, now it is time for you to know about the exact and the easiest way to invest your money. Investing money in ELSS hardly takes three steps, and a few necessary documents that must have in order to buy ELSS. So, go through these points and take your first step toward tax saving.
Step 1: The very first step in order to invest your money in the ELSS is to choose a service provider or more commonly known as an intermediary who will let you invest the money in the market. You can either choose an online partner or can take help of the local mutual fund investment firm to get the things done.
Step 2: The next step is to choose the mutual funds that you think can help you get the best returns. You can take help from the online experts, or consult with your acquaintances who have already invested their money in the ELSS and other investment schemes. This will help you get a broader way to invest the money.
Step 3: Once you have selected the bonds and mediator, you can easily invest your money online or by visiting their office.
In all, the ELSS is an excellent way to save your money in a legal an efficient way. So, follow the above-listed steps and choose the best mutual funds along with a reliable ELSS service provider.