Can I switch between different Tax Savings/ELSS Funds?

Yes, many fund houses provide the option to switch between different Tax Savings/ELSS Funds. Investors can switch their investments from one fund to another within the same fund house. However, it is essential to consider the exit load, tax implications, and investment objectives before making any switches.

Can I invest more than the maximum limit of ₹ 1.5 lakhs in Tax Savings/ELSS Funds?

While there is no upper limit on the amount you can invest in Tax Savings/ELSS Funds, the maximum limit for tax deductions under Section 80C of the Income Tax Act is ₹ 1.5 lakhs. Therefore, only the investment amount up to ₹ 1.5 lakhs is eligible for tax deductions.

Are Tax Savings/ELSS Funds subject to market risks?

Yes, Tax Savings/ELSS Funds invest primarily in equities, which are subject to market risks. The value of these funds can fluctuate based on the performance of the underlying securities. It is important to consider your risk tolerance and investment horizon before investing.

Can I redeem my investment before the completion of the lock-in period?

No, investors cannot redeem their investments in Tax Savings/ELSS Funds before the completion of the three-year lock-in period. Once the lock-in period is over, investors have the flexibility to redeem their units or continue investing.

How can I invest in Tax Savings/ELSS Funds with m.Stock?

Investing in Tax Savings/ELSS Funds with m.Stock is a simple process. First, create a demat account on the m.Stock platform. Complete your KYC verification and provide the necessary documents. Once your account is verified, you can browse and select from a range of Tax Savings/ELSS Funds available on the platform and invest according to your preferences.

Learn all about Investing in ELSS Funds

What are Tax Savings/ELSS Funds

Tax Savings/ELSS Funds, also known as Equity Linked Savings Schemes, are mutual funds that offer tax benefits under Section 80C of the Income Tax Act in India. These funds primarily invest in equities, giving investors an opportunity to participate in the growth potential of the stock market. With a lock-in period of 3 years, these funds encourage long-term investment horizons and promote wealth creation.

Features of Tax Savings/ELSS Funds

Equity-focused investments
Short lock-in period
Long-term gain

Benefits of Investing inTax Savings/ELSS Mutual Funds

Potential for optimised returns
Tax-saving potential

Flexibility and liquidity after lock-in
Lower tax on gains

Who Should Invest inTax Savings/ELSS Funds

Conservative Investors
Balanced funds with a moderate allocation to equities.
Moderate Investors
Growth-oriented funds that offer a balanced approach to tax benefits and potential growth.
Aggressive Investors
Equity-heavy funds for maximum tax savings and wealth creation potential.

Top Performing mutual funds

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FAQs

The lock-in period for Tax Savings/ELSS Funds is three years, starting from the date of investment. This means that investors cannot redeem their investments before the completion of the lock-in period.

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