With many investment options available today, building a portfolio that meets your financial goals can feel overwhelming. However, Equity-Linked Savings Schemes (ELSS) offer the dual advantage of significant returns and tax-saving benefits. As you plan for the New Year 2025, consider revamping your financial strategy by exploring how ELSS Mutual Funds can enhance your investment approach and support your wealth-building goals.
ELSS is a type of Mutual Fund wherein a professional fund manager with the requisite experience invests in various equity or debt instruments on your behalf. The fund manager collects investments made by various investors, and this entire pool of money is invested primarily across multiple shortlisted stocks on the exchange.
To see why ELSS Mutual Funds are best investment choice for the New Year, let's explore their key benefits:
Firstly, ELSS funds let you invest in the equity market for the long term. With a mandatory lock-in period of three years, they offer the potential for higher growth compared to debt-based investments. ELSS could be wise if you aim to grow your wealth in the coming year.
When you invest in ELSS, you can avail of tax benefits as per Section 80C of the Income Tax Act, 1961. You can claim deductions up to ₹1.5 lakhs from your taxable income.
While investing in ELSS means you have to deal with a lock-in period, it is relatively short compared to other tax-saving investment options. With ELSS, you only have to lock in your investment for three years and can also invest monthly via a Systematic Investment Plan (SIP).
Balancing potential returns with associated risks is essential when choosing an ELSS for investment. Here are vital factors to consider:
Take the New Year as a chance to create a diverse portfolio supporting your financial requirements over the long run. To easily invest in various debt and equity instruments, you can count on the HDFC Bank Demat Account. With Free Demat AMC for First Year and Zero paperwork, it takes less than 10 minutes to set up a Demat Account at HDFC Bank.
Click here to open your Demat Account instantly!
Eager to learn about Why You Should Invest In an Equity Mutual Fund? Visit Here.
*Terms and conditions apply. This is an information communication from HDFC Bank and should not be considered as a suggestion for investment. Investments in the securities market are subject to market risks; read all the related documents carefully before investing.
*Terms and conditions apply. The information provided in this article is generic in nature and for informational purposes only. It is not a substitute for specific advice in your circumstances. You are recommended to obtain specific professional advice before you take any/refrain from any action. Tax benefits are subject to changes in tax laws. Please contact your tax consultant for an exact calculation of your tax liabilities.