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Thumb Rules of Investing

Mar 2023
5 min
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ELSS is the only type of mutual fund investment scheme that offers investment andtax-saving features. ELLS funds mainly invest in equity and equity-linked securities such as listed shares. It is the only mutual fundthat is eligible for a tax rebate. You can claim up to Rs. 1.5 Lakhs of tax rebate every year by investing inELSS Mutual Funds as per the provision of Section 80C of the Indian Income Tax Act,1961.

There is no upper limit to the amount of money you can invest in ELSS Funds. You can even invest an amount assmall as INR 500 in the beginning. The performance of ELSS Funds is influenced mainly by market volatility andhence, does not offer any guaranteed profits. As such, you must consider its past performance and conductextensive research before investing.

What are the features of ELSS Funds?

 

  • Lock-in period

  • There is no maximum tenure for investment. However, there is a mandatory three-year lock-in period thatyou must consider. You cannot withdraw your investment during these three years.

  • Diversified investment
    A minimum of 80% of your total amount is invested in equity and equity-oriented share after carefulconsideration, whereas the remaining 20% is invested in debt and hybrid funds. This diversificationhelps mitigate the risks associated with equity investments..

  • Professional management
    ELSS investments are undertaken by professional fund managers with years of fund management experiencelike all mutual funds. Such managers have adequate knowledge about the past performance of the funds,thus ensuring that your investment is in safe hands.

  • Investment options
    You ca invest in ELSS funds in two ways - as a lump sum investment or via the Systematic InvestmentPlan or SIP method. The latter is ideal for people who wish to invest as low as INR 100-500 (dependingon the fund house).

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WANT TO KNOW MORE?
PGIM India Asset Management Private Limited
(CIN - U74900MH2008FTC187029)
Toll Free Number: 1800 266 7446
Email: care@pgimindia.co.in
This is an Investor Education and Awareness Initiative by PGIM India Mutual Fund.
All the Mutual Fund investors have to go through a one-time KYC (Know Your Customers) process. Investor should deal only with the Registered Mutual Funds (RMF). For more info on KYC, RMF and procedure to lodge/redress any complaints, visit https://www.pgimindiamf.com/ieid.
MUTUAL FUND INVESTMENTS ARE SUBJECT TO MARKET RISKS, READ ALL SCHEME RELATED DOCUMENTS CAREFULLY. Read more
The information contained herein is provided by PGIM India Asset Management Private Limited (the AMC) on the basis of publicly available information, internally developed data and other third-party sources believed to be reliable. However, the AMC cannot guarantee the accuracy of such information, assure its completeness, or warrant such information will not be changed. The information contained herein is current as of the date of issuance* (or such earlier date as referenced herein) and is subject to change without notice. The AMC has no obligation to update any or all of such information; nor does the AMC make any express or implied warranties or representations as to its completeness or accuracy. There can be no assurance that any forecast made herein will be actually realized. These materials do not take into account individual investor's objectives, needs or circumstances or the suitability of any securities, financial instruments or investment strategies described herein for particular investor. Hence, each investor is advised to consult his or her own professional investment / tax advisor / consultant for advice in this regard. The information contained herein is provided on the basis of and subject to the explanations, caveats and warnings set out elsewhere herein. The views of the Fund Manager should not be construed as an advice and investors must make their own investment decisions regarding investment/ disinvestment in securities market and/or suitability of the fund based on their specific investment objectives and financial positions and using such independent advisors as they believe necessary.
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