Who should invest in (ELSS) Tax Saving Mutual Funds?

Who should invest in Tax Saving Mutual Funds? zoom-icon

Tax Saving Mutual Funds or Equity Linked Savings Schemes are diversified equity funds that provide tax deduction benefits under Section 80C of the Income Tax Act. Hence, ELSS funds are suitable for any taxpayer who is willing to take the risk of an equity-oriented tax savings instrument. ELSS funds are better suited for the salaried class as they have a regular source of income and need to make tax saving investments every year. In fact, they can conveniently invest in ELSS through SIP on a monthly basis to benefit from rupee cost averaging. 

If you are a young taxpayer, you can take advantage of the dual benefit of investing in ELSS

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