Investment in a mutual fund has gained tremendous popularity in the past few years. People also have got benefits from various asset management companies that handle the investment of the public in their funds. In the mutual fund market also there are varieties that one must note and research which can help him invest the amount in the right type of fund. As there are lots of types in the market here, one must know a few of its types that can help him chose the type and fund. Among all the funds the ELSS differs due to its peculiar feature of tax saving on the investment.
The mutual fund:
A mutual fund is a famous tool of investment where one can have a good return in a short as well as long run. However, here one must note that usually, it is long term mutual fund only in which one can get the benefit. The ELSS is also one of the known types of mutual fund which is basically used as a tool for saving tax on the taxable income of the investor. One can invest in this mutual fund and save the income tax up to 150000 under section 80 C. The ELSS option has got lock-in period of three years which means the investor cannot withdraw the amount for three years after investing. After knowing the benefits one may have a question how to invest in ELSS which is natural. Here is the process mentioned that could help one invest the amount in this mutual fund and save tax as well as avail good return on his investment.
Here the investors who are worried about investing in the ELSS option can know the options that can help them invest. The options offered by the AMCs are offline and online. In the online also one can invest the amount via a website or even an app of the AMC. In the offline mode, one can invest with the help of an agent or a broker where the physical documents, applications and cheque have to be submitted. The online option can be more helpful to the users nowadays as one can invest amount at any point of time and from any corner. One can also check all the required information about the fund and also avail the facility of ECS or online payment to the investment. Hence the majority of the investors prefer to have investment via online more in this age.
The market has ample AMCs that have different funds and beneficial offers for investors. One can choose one of these options as per their own choice. The investor, however, needs to check the funds and relevant details before investing in the market as the performance of the same depends on the market only. Looking at the tax rates and increase in earning of the people the ELSS can be a viable option, and a number of investors have taken benefits of the same. From the additional earning point of view also it is a good option.