Equity Linked Saving Schemes (ELSS)

An ELSS is a diversified equity mutual fund which has a majority of the corpus invested in equities. Since it is an equity fund, returns from an ELSS fund reflect returns from the equity markets. This is an equity diversified fund and investors enjoy both the benefits of capital appreciation, as well as tax benefits.

This type of mutual fund has a lock in period of 3 years from the date of investment. This means if you start a Systematic Investment Plan in an ELSS, then each of your investments will be locked in for 3 years from the respective investment date. Investors can exit ELSS by selling it after 3 years.

Tax Benefit of ELSS Mutual Fund

Planning your taxes is an integral part of your financial planning. Sec 80C of the Income Tax Act allows you to claim deductions from your taxable income by investing in certain investments. One of the most popular Sec 80C investments is in tax saving mutual funds or Equity Linked Savings Scheme (ELSS). ELSS has the shortest lock-in period of 3 years and has potential to give higher returns than other investments eligible under Section 80C.

ELSS MF makes an investor eligible for a tax deduction under section 80C of the Income Tax Act, 1961; subject to a maximum limit of Rs 1.5 lakh per annum (as per current tax laws).

Funds Masters Recommended Best Equity Funds For Year 2019

When it comes to investing in mutual funds, everyone else tells you what to do and gives you checklists. Funds Masters thinks about everything and automates it for you.

Choosing the right funds from over 8,000+ funds is complicated. We do this for you through a disciplined investment process. We pick funds with care and without bias. We monitor and review our selection periodically.

It’s proven by behavioral finance experts that fewer scientific choices lead to better decisions. Your portfolio should not have too many or too few funds. Generally 3-5 funds are sufficient for all your financial needs. You need different types of funds for different goals. Equity, Debt and Tax saving.

The Following ELSS Mutual funds are hand Picket funds for your long term wealth creation and specially for investing in year 2019.