Mital Chandrakant Shah
Owner, Shah Financial Services
One such option is the equity-linked saving scheme popularly known as ELSS or tax-saving mutual fund. This type of mutual fund typically tends to be a diversified, open-ended equity fund which comes with a three-year lock-in period. So, apart from wealth creation, one can also enjoy tax benefits under Section 80 C of the Income Tax Act, 1961. Since ELSS is covered under the Section 80 C provisions, you can claim tax deductions of up to ₹1,50,000 a year. Any amount above ₹1,50,000 a year will not be considered under Section 80 C provision.
The striking feature of ELSS is that it has the shortest lock-in period when compared to other investment options like PPF, NSC, etc. As a result, ELSS tends to be more liquid and accessible as compared to any other Section 80 C investment option. Also, ELSS is the only Section 80 C investment option which has the potential to offer inflation-beating returns. This is what makes ELSS stand out among all tax-saving investment options. Given the nature of the fund, ELSS can be considered as a stepping stone into equity investing for investors who are new to equity investing.
This story is from the February 28, 2022 edition of Dalal Street Investment Journal.
Start your 7-day Magzter GOLD free trial to access thousands of curated premium stories, and 8,500+ magazines and newspapers.
Already a subscriber ? Sign In
This story is from the February 28, 2022 edition of Dalal Street Investment Journal.
Start your 7-day Magzter GOLD free trial to access thousands of curated premium stories, and 8,500+ magazines and newspapers.
Already a subscriber? Sign In
Does AUM Size Matter?
Investors generally focus on a fund's past returns. They think that a larger fund is better. On the flip side, some investors raise concerns about whether a fund can sustain its strong performance after growing to a substantial size. What is the reality? Rakesh Deshmukh takes a closer look at the scenario
Base Rate Investing: The Smart Investor's Secret
Base rate investing offers a distinct advantage to investors encouraging them to look beyond the noise and focus on underlying fundamentals and longterm trends. The article explains how by understanding and applying this strategy effectively, you can make informed investment decisions and potentially outperform the market over time
Back To The 'All is Well' Feeling
Domestic indices hit record highs on the back of robust performance in real estate, power, metals and automotive sectors
Should Commodity Funds Be Part Of Your Portfolio?
Commodities serve as tangible assets that offer investors a means to engage with the real economy and provide a degree of insulation from financial system disruptions. In this scenario, multi-asset allocation funds represent a more efficient vehicle for commodity exposure compared to hybrid schemes. Here are the details
Asset Allocation & Diversification
Remember, when you diversify your investments, you minimise the chances of suffering from what is known as 'single security risk', or the risk that your investment will fluctuate widely in value with the price of one holding.
Ten Commandments of Wealth Creation
Financial Planning
Gold Glitters Amid a Narrow Range Trading
Over the last two weeks, the commodities market displayed cautious activity with investors trading within narrow margins, eagerly awaiting pivotal economic data and insights from Federal Reserve officials.
Can Global Equities Sustain the February Momentum?
Even though the markets touched new highs in February, they did experience some challenges, notably in the bond sector, which faced difficulties due to an uptick in interest rates.
"Future outlook of railways and railway wagons industry appears promising"
Umesh Chowdhary Vice Chairman & Managing Director Titagarh Rail Systems Limited
Metals and Mining: Poised For A Steely Performance
While investors were drawn to the impressive rally in metal stocks, the recent interim budget indirectly bolstered the metals industry with substantial announcements in infrastructure, real estate, defence and railway sectors, which are known for their extensive use of metals. Mandar Wagh explores the future prospects of the industry, analysing financial performance, risks and growth triggers