The current financial year is about to end. If you also want to save your hard earned income from tax, then ELSS scheme can be a good option. ELSS is a market linked scheme. The value of investment in this varies every day. Money is locked in ELSS for three years. On this, income tax is exempted under section 80C. Experts say that this is the least locked in scheme in terms of tax savings. This means that you can withdraw money at the earliest.
Today we are going to give you information about one such scheme. Canara Robeco Equity Tax Saver Fund has given a bumpy return of 80% in a year. That is, the amount of 10 thousand rupees has increased to 18 thousand rupees.
Canara Robeco knows about Equity Tax Saver Regular Plan Growth…
If you talk about the performance of this fund, then it has been very excellent. 126 percent in the last 5 years, 300 percent in 10 years has given. This means that the fund’s performance has been much better in the long term.
Should I invest in this fund?
Experts say that the stock market has a downward trend for the past few days. In such a situation, investors will get NAV at a cheaper rate. There is full expectation of the recovery in the Indian economy that in the coming days, as the economic growth will increase, the Indian stock market may see a rapid trend.
There is double profit on investing in these funds
Experts say that along with the good returns in the funds, the second benefit is the missed tax on it. Tax exemption is available under section 80C. So you have a chance to get double return with tax exemption till 31 March 2021.
Up to 1.5 lakhs can be invested under 80C. Most ELSS has a lawn-in period of only 3 years, after which you can redeem it. Investors of ELSS can also opt for Systematic Investment Plan (SIP).
Important things about ELSS Fund…
When investing in tax saving mutual funds, investors have many options to choose from. These include growth option, dividend option and dividend reinvestment option.
In the growth option, investors are not paid a dividend. Gains / loss schemes are available only during cashing or switching from it.
In the dividend option, the investors pay the dividend. However, the declaration of dividend depends entirely on the fund house.
The dividend that is received is taxed. In the dividend reinvestment option, the dividend that the fund house announces is again invested in the scheme. The reinvestment of dividend also has a lock-in period.
Tax exemption is available under section 80C on investments in ELSS funds. If you withdraw money from the scheme after the lock-in period is over, then it is taxed.
According to current tax laws, holding equity funds for more than one year incurs long-term capital gains tax.
However, this tax is levied at a rate of 10 per cent on gains of more than Rs 1 lakh. Gains up to 1 lakh rupees are not covered by tax.
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