How to invest in ELSS Online & its advantages
Invest in ELSS
Before we jump to the topic i.e how to invest in ELSS online, we first understand what is less. ELSS stands for the equity-linked saving scheme. These type of investments are mostly driven by a tax-related saving scheme. Before you invest, make sure that you are going to receive the best return value and it should not take away your peace of mind.
Also, ELSS should not charge the amount more than the other and the provider of ELSS should be the best. Make sure you plan the investment very carefully before investing and it should not affect your other investments.
Now, we are going to see how to invest in ELSS mutual funds online.There are few steps which you need to follow in order to invest in ELSS and they arementioned below.
- Selection of tax-saving scheme – The first step is to select the tax-saving scheme that will suits you well. The ELSS scheme is based on the returns it offers. For example, last year Axis mutual funds gave more than 40% of annual return, where escorts gave bearly of 14% to 15% return annually. It is very difficult to predict the best mutual fund for you. But chances are most likely in favor for the one who has highest forming mutual funds last year.
- Choose the plan – The ELSS fund has mainly two types of plan, first is regular mutual funds, and another is tax saving mutual funds.Regular plan charges a higher expense ratio because of the payment to the one who distributes mutual funds.
- Open a bank account– It is a very important step, you have to open a bank account because the dividend will be credited into the bank account with your name.
- Pick your intermediary – There are lots of mutual funds distributors all over the world, even though you can connect with the company directly. It is advised to pick an intermediary who will take off most of the burden from your shoulder.
- Mutual fund distributor – A tons of mutual finds distributor available out there which has the role in investing on your behalf which they think is suitable and provide you the related benefits.
- Online distributor – You can also pick an online distributor instead of the one which you have met. IT all depends on where you are getting more benefits.
Advantages of investing in ELSS
The advantages of ELSS is that offers tax-free gains with high liquidity and low charge expense. Moreover, everything is transparent about ELSS. The lock-in period of ELSS is bearly 3 years. After the lock-in period, the investors can withdraw their amount at any time according to their wish and requirements.
In addition, with ELSS investment calculator, you can easily calculate the exact amount of investment. It has the potential to provide a high return on investment due to its short term investment. Moreover, the minimum limit of the amount to invest in ELSS is 500 rupees.