The Best tool to save tax

In this era of financial uncertainty, there are many options offered by the companies and experts with the help of which one can have a better portfolio created. Among the leading options of wealth creation, one can find the place of a mutual fund on top. There are ample options in mutual funds also which can help one get a better rate of return on the amount invested. For the common man, it is necessary to know the world of mutual fund in little depth as there are many funds with different features that can help one get a better return on low investment also.

The ELSS:

The equity-linked saving scheme is known as ELSS in short, and it is a known tool of saving tax on the taxable income. For an investor, the question of how to invest in ELSS can be a tricky one, but indeed the process of investing in ELSS is much simple. In the regular mutual funds, the amount invested does not attract the exemption of the tax, and that is the point where ELSS differs from other mutual funds. The amount in ELSS can be invested in one go or instalments as per the convenience of the investor.

The modes of investment:

Due to the digitization, one can go for investing in ELSS by an offline option or an online one. Usually, the process and documents in both of these options are same only, one can find the online option easier one if he is adapted to the online form filling and transfer of funds. In the offline mode, one has to fill the form manually and provide copies of the documents with the application form. In the online mode, one needs to fill the form online and offer all the soft copies of the documents which are required for the application. For modern users, all the AMCs offer online mode as well as the facility of applying with the help of some of the apps also. Hence investing is made hassle-free and rewarding.

The advantages:

After understanding how to invest in ELSS, one needs to know what the benefits of investing amount in this mutual fund are. The foremost important advantage is one can save tax on his income up to 150000. The lock-in period in ELSS is only three years which means one can get the invested amount with a handsome return after three years which is considered as a short period. One can also have another benefit in the form of investment as in case of tax payment one has to pay the tax in one go while in case of ELSS which helps to save tax one can also go for payment in monthly mode. The return on the fund invested in ELSS is also good which one can check from past record of the concerned AMC. Hence there are many advantages one can have if one goes for ELSS in comparison to any other option in the mutual fund market.