ELSS Mutual Funds, tax-saving investments in equity shares, offer wealth growth and tax exemption up to INR 1.5 lakh under Section 80C with a 3-year lock-in.
Dividend option distributes regular dividends to investors, whereas the Growth option compounds returns by reinvesting earnings.
1.Dividend and Growth options:
ELSS funds offer tax deductions up to INR 1.5 lakhs under Section 80C, reducing taxable income with the shortest lock-in of 3 years among tax-savers.
2.Tax Benefits:
ELSS funds provide SIP options for investing fixed amounts regularly, reducing market timing risk and enabling rupee-cost averaging benefits.
3.Systematic Investment Plan:
ELSS funds have a 3-year lock-in period; investors can't withdraw before this, but can either withdraw or continue investing after its completion.
4.Lock-In Period:
ELSS funds are managed by expert fund managers who select top stocks and adjust portfolios based on market conditions.
5.Professionally Managed:
ELSS funds invest in a diversified mix of stocks across sectors and market caps, reducing risk from focusing on one stock or sector.
6.Balanced & Diversified Investment:
In ELSS mutual fund's growth option, returns are reinvested, growing the investment.
1.Growth Option:
In ELSS mutual fund's dividend option, dividends are distributed periodically based on fund performance.
2.Dividend Option:
In the ELSS mutual fund's dividend reinvestment option, declared dividends are reinvested, offering compounding benefits without cash payouts.
3.Dividend Reinvestment Option:
ELSS funds offer a 3-year lock-in, higher historical returns around 12-15%, tax-exempt LTCG up to Rs. 1 lakh, and easy SIP investment for tax-saving discipline.
ELSS funds have a 3-year lock-in for long-term investment and tax benefits under Section 80C, unlike regular mutual funds with no mandatory lock-in.
1.Lock-In Period:
ELSS funds provide tax deductions up to Rs. 1.5 lakhs under Section 80C, a benefit not available with regular mutual funds.
2.Tax Benefits:
Regular mutual funds offer more liquidity than ELSS funds, which have a mandatory 3-year lock-in period, unlike regular funds with no lock-in.
3.Liquidity:
Disclaimer:
*T&C Apply