Investing in different schemes is a very smart way to save money. I have been investing in mutual funds for about 5 years and everything is perfectly fine. However, it has some risks as well so since last year I am investing in ELSS as well. Both are savings schemes only yet different from one another. It is tough to say between ELSS vs Mutual Fund which is better. But I personally feel ELSS is better. Without knowing what both of them mean, you cannot understand the reason why I said so. Hence I am going to share with you their meaning first and would also like you to share more details about them.
Get best deals on home loans through NoBroker Home Loan services What do ELSS and Mutual Funds mean?The work of Mutual Funds is to pool money from investors. They use this money to buy stocks, bonds or other securities. An investor also shares the same investment objective and invests in these things only. Now if the price of these things drops, it will be a loss but if it increases, the investor can really have a good sum of money.
ELSS is also a Mutual Fund. The only difference is that it offers tax deductions up to Rs 1.5 lakh per year as per Section 80C of the Income Tax Act 1961.
So the
difference between
ELSS
and
Mutual Fund
is that ELSS allows tax benefits but the latter does not.
Which is better Mutual Funds vs ELSS?
ELSS is better than Mutual Funds as it gives tax benefits. But also know that ELSS has a lock-in period of 3 years but Equity Mutual Funds have no such things. However, this 3 years lock-in period becomes a plus point as equity returns build over time hence you will get a good amount of money.
Now you choose which is better between
ELSS vs Mutual Fund.
Read More:What is real estate vs mutual funds?
What is ELSS?
How much tax can be saved in ELSS?
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Authors Of The Question
ELSS vs Mutual Fund which is Better?
Sreejita
299Views
1 Year
2022-12-30T20:54:39+00:00 2022-12-30T20:54:48+00:00Comment
1 Answers
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