Tax Saving: 49% return given in a year, tax exemption will also be available, this scheme is icing on the cake for the taxpayer

New Delhi. Now less than 3 months are left for the end of the financial year 2024-25. However, to save tax, it is advisable to plan at the beginning of the financial year. But, if you have not done this work yet then you should not delay now. If you also want good returns on your investment along with saving tax, then you should invest money in Equity Linked Savings Scheme (ELSS Mutual Fund). The special thing is that in the last one year, some ELSS mutual funds have given returns of up to 49%. Equity Linked Savings Scheme (ELSS) lock-in period is only 3 years, which is less than other tax saving options. Investors’ money remains locked in tax saving FD for 5 years and in Public Provident Fund for 15 years.

Tax exemption is available under Section 80C on investment up to Rs 1.5 lakh in ELSS. Financial experts say that if the ELSS fund is performing well and the investments are flourishing, then investors should stay in the schemes for a longer period to earn maximum returns. Lump sum investment can also be made in ELSS and money can also be invested through SIP. ELSS is a type of mutual fund, which mainly invests in equity or equity oriented products. In this the returns are more than bank FD. Investments in ELSS are subject to market risk.

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benefit of lock-in
In ELLS the money remains blocked for three years. There is a big benefit from this. Investing in a disciplined manner over a long period of time gives you the benefit of compounding, which further helps in wealth creation. The end of the lock-in of 3 years does not mean that you will have to exit the fund, you can extend it further.

These ELSS funds gave strong returns
Some ELSS funds have given excellent returns. Motilal Oswal ELSS Tax Saver Fund has given an average return of 49 percent in one year, 28 percent in three years and 25.98 percent in five years. The one year average return of SBI Long Term Equity Fund has been 28.78 percent, three year average return has been 24.78 percent and five year average return has been 25 percent. The returns of ITI ELSS Tax Saver Fund in the last one year have been 25.82 percent, three years 21.65 percent and five years 20.17 percent.

(Disclaimer: The information given here is based on mutual fund performance. If you want to invest money in any of these, then first consult a certified investment advisor. News18 will not be responsible for any profit or loss you may incur. .)

Tags: Money Making Tips, mutual fund, tax saving, Tax saving options