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ELSS Fund - Equity Linked Saving Scheme
Your Payable Tax
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Your Tax after investment
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Disclaimer: This material is created to explain basic financial / investment related concepts to investors. Mutual Fund does not provide guaranteed returns. Investors are advised to seek professional advice from financial, tax and legal advisor before investing.
What is ELSS?
Equity Linked Savings Scheme (ELSS) funds are tax-saving mutual funds in India. These investments combine the benefits of equity investments with tax deductions under Section 80C.
These ELSS schemes come with a 3-year lock-in period. Once the lock-in period is over, investors are free to redeem their units or switch. As per CBDT rules, ELSS shall remain invested to the extent of at least 80% in equity and equity related securities. So all ELSS schemes are required to invest in equities and equities are always subject to volatility.
ELSS schemes may be an ideal option, but investors investing in any mutual fund should carefully consider their risk tolerance, investment goals, and time horizon.
Benefits of ELSS Funds
Save Tax
The primary benefit of ELSS is tax saving. By investing in ELSS, you can claim annual tax deductions on investments up to Rs.1.5 lakh under Section 80C.
Save Tax
Power of Compounding
Wealth Creation
No Maximum Period
SIP Option
Ease of Investment
Why choose equity for long-term wealth creation?
- If you had invested, what would your returns be?
- Performance of equities
- 5 Years
Amount Invested
₹6,00,000Current Value
₹7,83,785 - 10 Years
Amount Invested
₹12,00,000Current Value
₹20,50,340 - 15 Years
Amount Invested
₹18,00,000Current Value
₹41,86,232 - 20 Years
Amount Invested
₹24,00,000Current Value
₹1,03,86,776
Based on a SIP of 10,000 in S&P BSE Sensex on the last day of each month. As on: 31st January 2020. Source: Bloomberg
Past performance may or may not be sustained in future
Learn more about ELSS Funds
How To Choose ELSS Funds Based On Your Investment Objective?
If you are someone with a moderately high risk appetite with a long term investment objective who wishes to seek capital gains through equity investments, you might want to consider ELSS as a solution to your taxes.
Learn More
7 Things to Know Before Investing in an ELSS Fund
Investing is a long journey and if you wish to increase your chances of capital appreciation, it’s time to get on board. There are various investment tools available in the market catering to investors of all types.
Learn More
How ELSS Can Help You in Tax Saving and Retirement Planning
Generally, while setting their ultimate financial goal, investors tend to ignore one of its aspects, and this is planning for retirement.
Learn MoreFAQs on ELSS Tax Saving Funds
When you invest in ELSS of up to Rs 150000, you can claim taxation deduction of up to Rs.46,800 every year and a chance to create wealth.
Issiliye sochna kya hai, #ELSSHaiNa.
ELSS is like any other open-ended equity fund. It's just that it has a lock-in period of 3 years, which means you can't redeem the investment before 3 years from the allotment date.
Money is invested in equities, which holds the potential to create wealth over a period of time. With ELSS, you can plan long-term financial goals such as your retirement, children's education and their marriage, or anything, with ease. When you invest in ELSS of up to Rs 150000, you can claim taxation deduction of up to Rs.46,800 every year and a chance to create wealth
Oh yes!
Since the money is invested in equities, it has the potential to create wealth over a long-term period.
There is no right or wrong time for investing in equity mutual funds. Don't try to time the market. The sooner you invest, the better!
ELSS has one of the shortest lock-in periods compared to other tax-saving instruments. Just 3 years!
And it is a good thing. Here's why.
The inherent advantage is that money stays invested.
The answer is either.
For example, assuming you want to invest Rs. 1.5 lakhs in ELSS, you can either do so in one go or else do a SIP of Rs. 12,500 per month to avail tax benefits during a particular financial year.
An SIP is a hassle-free way to invest your money in equity mutual funds. The minimum investment amount in ELSS for SIP or Lumpsum is just Rs. 500.
Remember, ELSS has a lock-in period of three years. Meaning, you will not be able to redeem your units before the completion of three years. Post redemption it will be taxable as Long term capital gain (LTCG). Long-term capital gains (LTCG) up to Rs 1 lakh is tax-free and LTCG over Rs 1 lakh is taxable at the rate of 10% without the benefit of indexation.
*ELSS Investments are subject to a 3-year lock-in period and are eligible for tax benefit under section 80C of the Income Tax Act, 1961.
#As per the present tax laws, eligible investors (individual/HUF) are entitled to deduction from their gross income of the amount invested in Equity Linked Saving Scheme (ELSS) up to Rs.1.5 lakhs (along with other prescribed investments) under section 80C of the Income Tax Act, 1961. Tax savings of Rs. 46,800 mentioned above is calculated for the highest income tax slab.
Finance Act, 2020 has announced a new tax regime giving taxpayers an option to pay taxes at a concessional rate (new slab rates) from FY 2020-21 onwards. Any individual/ HUF opting to be taxed under the new tax regime from FY 2020-21 onwards will have to give up certain exemptions and deductions. Since, individuals/ HUF opting for the new tax regime are not eligible for Chapter VI-A deductions, the investment in ELSS Funds cannot be claimed as deduction from the total income.
Investors are advised to consult his/her own Tax Consultant with respect to the specific amount of tax and other implications arising out of his/her participation in ELSS
“This is an investor education and awareness initiative by Axis Mutual Fund. Investors have to complete one-time KYC process. Visit www.axismf.com or contact us on customerservice@axismf.com for more information . Investors should deal only with registered Mutual Funds, details of which are available on www.sebi.gov.in- Intermediaries/Market Infrastructure Institutions section. For any grievance redressal, investors can call us on 1800 221 322 or write us at customerservice@axismf.com or register complaint on SEBI Scores portal at https://scores.gov.in”
Statutory Details: Axis Mutual Fund has been established as a Trust under the Indian Trusts Act, 1882, sponsored by Axis Bank Ltd. (liability restricted to Rs. 1 lakh). Trustee: Axis Mutual Fund Trustee Ltd., Investment Manager: Axis Asset Management Co. Ltd. (the AMC).
Mutual Fund Investments are subject to market risks, read all scheme related documents carefully.
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Statutory Details: Axis Mutual Fund has been established as a Trust under the Indian Trusts Act, 1882, sponsored by Axis Bank Ltd. (liability restricted to Rs.1 lakh). Trustee: Axis Mutual Fund Trustee Ltd. Investment Manager: Axis Asset Management Co. Ltd. (the AMC). Risk Factors: Axis Bank Ltd. is not liable or responsible for any loss or shortfall resulting from the operation of the scheme
Mutual fund investments are subject to market risks, read all scheme related documents carefully.
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