What is difference between ELSS and mutual funds

What is difference between ELSS and mutual funds
2 min read
17 January 2023

Are you serious about your financial future? Do you really want to spend the next decade or more locked into a career and/or a specific company? If not, then you might want to think twice about investing your money. Even though the corporate debt has become a well-known risk, most individual investors are reluctant to get involved in this sector. This is especially when compared with other possible investments such as real estate or stocks. In the following article,  Read on

When you start investing, the most common investment tool being introduced to you will be mutual funds. Mutual funds are one of the most preferred investment options among investors all over the world. Mutual funds are nothing but pooled money invested in a variety of stocks, securities, and debts based on financial goals. 

Unlike other investment options, mutual funds are managed by experienced professionals. Moreover, mutual funds offer flexible options for everyone to invest in the form of lumpsum and SIPs. 

For instance, you can even start your SIP with as low as Rs.500 per month and build your wealth bit by bit. Additionally, Mutual funds offer easy liquidity of the mutual fund units almost in a day or two except for the ELSS. ELSS are equity-linked saving schemes. The investments in ELSS up to Rs. 1.5 lakhs are tax deductible under Section 80C of the Income Tax Act. 

But the ELSS investments have a lock-in period of 3 years. These funds can be redeemed only after 3 years. Similar to other mutual funds, ELSS investments can also be done as lumpsum or SIPs based on your convenience. Therefore, if you are searching for a good investment product, start your mutual fund investment today!

 

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mani sai 2
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