1 / 6

What Are The Key Things You Must Remember Before Starting An ELSS SIP?

Here are a few key things about SIP investment in ELSS before starting your investment. Letu2019s look at them. Visit https://www.investmentz.com/elss-tax-saving-funds to know more!<br><br><br><br>

Download Presentation

What Are The Key Things You Must Remember Before Starting An ELSS SIP?

An Image/Link below is provided (as is) to download presentation Download Policy: Content on the Website is provided to you AS IS for your information and personal use and may not be sold / licensed / shared on other websites without getting consent from its author. Content is provided to you AS IS for your information and personal use only. Download presentation by click this link. While downloading, if for some reason you are not able to download a presentation, the publisher may have deleted the file from their server. During download, if you can't get a presentation, the file might be deleted by the publisher.

E N D

Presentation Transcript


  1. What Are The Key Things You Must Remember Before Starting An ELSS SIP?

  2. Introduction • We are all very pleased in investing in mutual funds through the SIP route nowadays as most of us know the key perks they bring to our portfolio. You need not change your strategy with regards to ELSS funds. You can also invest best-in-class ELSS mutual funds through various SIP schemes they offer. We are all cognizant that ELSS tax savings schemes help us save taxes through tax deductions for investments up to Rs. 1.5 lakhs under section 80C.    • That said, you will have to agree a few key things about SIP investment in ELSS before starting your investment. Let’s look at them:

  3. Make sure you choose your scheme carefully • Equity markets are highly volatile, which makes ELSS SIP a good way to access the markets. You must select the ELSS scheme carefully. Start by comparing ELSS schemes on different parameters and performance benchmarks during the past 1 year, 2 years, 3 years, and 5 years. Visit the mutual fund’s website to get all the facts you want.

  4. Ensure you choose a SIP date that best meets your requirement • Needless to say that you must select your SIP date discreetly to make sure that there are plenty funds available to take care of the ELSS SIP investment on that date.

  5. Knowing your SIP period for the tax is key • Generally, there’s a lot of ambiguity between the lock-in period and SIP period of ELSS schemes. ELSS schemes have a 3-year lock-in period where you cannot access your money or trade your units. If you started your ELSS SIP scheme for Rs. 7500 for three years in September 2017, you can avail a maximum reduction of Rs. 37500 (7 months X Rs. 7500) or the amount that is equal to your seven monthly investments.

  6. Lock-in period is an a critical factor for ELSS SIP    • When you invest in ELSS through SIP schemes, please note that each SIP investment will be treated as a separate investment. Thus, each SIP will have a 3-year lock-in period. In the above example, the ELSS SIP you started in Sep 2017 will have a lock-in period until Sep 2020. Likewise, The Oct 2017 SIP will have a lock-in period until Oct 2020, and so on.

More Related