Is ELSS risk free?
ELSS funds are essentially diversified equity funds and carry similar risk as equity funds as they both invest in the equity markets.
But in addition to the implied equity risk component, ELSS funds have a three year lock-in period after investment during which the money from the fund cannot be taken out..
Is ELSS safe?
Don’t invest just for tax saving: ELSS schemes provide you tax benefits but in the end, they are equity schemes. So you should remember that they can be risky, but they can be extremely rewarding. Whenever you are picking a tax-saving instrument like ELSS, be careful about the risk, lock-in period, returns, etc.
Which ELSS is best to invest in 2020?
Top 10 Elss Mutual FundsFund NameCategoryFund Size(in Cr)Mirae Asset Tax Saver FundEquity₹4,270Quant Tax Plan FundEquity₹17BOI AXA Tax Advantage FundEquity₹309Axis Long Term Equity FundEquity₹21,83612 more rows
Which is best ELSS or sip?
Tax Benefits An additional benefit that comes with ELSS schemes is that of tax benefits under section 80C. Under this section, an investor is exempted from tax upto Rs. 1,50,000. … Therefore, if you invest in an ELSS mutual fund through the SIP or lumpsum mode, you will be able to save tax.
Is ELSS better than MF?
Equity Linked Saving Scheme (ELSS) is a type of Mutual Fund where investments are made in Equity. The major difference between ELSS and a normal Mutual Fund is the tax benefit that an investor gets for investing in an ELSS.
Is it good to invest in ELSS now?
You get double benefits of wealth creation and tax saving. Ideal for first-timers in the stock market, you can get inflation-beating returns in the long run. ELSS comes with a lock-in period of three years, the shortest among tax-saving investments under Section 80C.