Sunday, 28 February 2016

Top Equity Linked Savings Schemes (ELSS): To Invest In 2016

Equity Linked Savings Schemes (ELSS) mutual funds is one of the best investment cum tax saving option available to the Individuals, who are looking at tax saving investment schemes. Previously, I have discussed about  the Features and Benefits of Investing in ELSS, the links to the post is provided below:-

In this post I will discuss about the Top ELSS plans one may consider for Tax Saving as well as Investment. ELSS plan is a viable investment cum tax saving option in the current scenario as the markets have been underperforming for quite some time now. This means you will acquire more units at a lower NAV which promises better returns on the investment in the future. However, investment in Mutual Funds are prone to market risks and fluctuations so Individuals should invest on based on their appetite to take risk.
The features of ELSS plan which makes it an attractive Investment option is:-
  • Short Lock in period for the Investment. (3 years)
  • Tax Exemption on the Investment as well as on Maturity Sum.
  • Easy to Invest.
  • Professional Management of Funds to ensure you get better returns on your Investment.

Here are the TOP ELSS Investments plans based on their performance over the years. I have only considered Funds which are operational for 5 years or more.

ELSS schemes are prone to market fluctuations and downtrends, Individuals should keep it in mind before investing. However such market risks are temporary in nature and instead of backing out, one should hold on and wait patiently for the tide to get over. It has been observed that if one remains invested in the Fund over a longer period (5/10 years) the return on Investment is much higher as compared to other fixed return investment schemes. 

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