31st March is coming..

 

For every taxpayer 31stMarch on calendar starts ringing a bell and for the salaried, there is an additional reminder from the office HR office to furnish proof of tax savings. A tax saving avenue that has gained wide popularity among taxpayers is the possible ways to save tax under Section 80C of the income tax.

Let us see all the options to avail this benefit..

Among all the options ELSS is most suited to younger/middle aged taxpayers as they have sufficient time to let the compounding do the magic of wealth creation.

Equity Linked Saving Scheme or ELSS is a type of mutual fund scheme that primarily invests in the stock market or Equity. Investments of up to 1.5 Lac done in ELSS Mutual Funds are eligible for tax deduction under section 80C of the Income Tax Act. The advantage ELSS has over other tax Saving instruments is the shortest lock-in period of 3 years. individual/ HUF are entitled to deduction from their gross income of the amount invested in ELSS. The main benefit of this investment is ELSS mutual funds have the potential to offer much higher returns than other tax saving instruments such as PPF or NPS. One can opt for dividend payout option to get income from locked funds.

Please refer to these 5 top performing ELSS MF schemes and their returns..

Axis Long Term Equity Fund

5-year CAGR – 18.26 per cent

Industry allocation – Financial, Services, Technology,

 

BOI AXA Tax Advantage Fund

5-year CAGR -20.04 per cent

Industry allocation – Financial, Chemicals, Technology,

 

Canara Robeco Equity Tax Saver Fund

5-year CAGR -19.55 per cent

Industry allocation – Financial, Technology, Automobiles

 

DSP Tax Saver Fund

5-year CAGR -18.34 per cent

Industry allocation – Financial, Technology, Energy

 

Mirae Asset Tax Saver Fund

5-year CAGR – 24.16 per cent

Industry allocation – Financial, Technology, Energy

( As on March 15, 2021) 

 

*This is a data & not a recommendation.

Need help or guidance to invest in ELSS?

Call or WhatsApp: 95116 00639






 


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