Do you want to save maximum taxes on your take home salary? Then read the article in detail to get maximum knowledge about tax savings investments and where should you invest in ELSS tax saver funds in 2023.
Written by CA Pankaj Chhabra – 
ELSS Funds
ELSS funds are equity oriented mutual funds which allow you to save tax while you invest in such schemes for long term duration. Investment under such schemes gives you the dual benefit of Investment as well as deduction under section 80C of income tax.
To read more about ELSS Funds
Benefits of Investing in ELSS Funds:
- Shortest Lock-in period of 3 years
- Diversification
- Superior Returns
What are the Top ELSS Funds for investment in FY 2023?
Although every AMC is offering Tax Saver funds or ELSS funds. But keeping in view the rolling period return, risk associated, expenses ratio and other key factors, the following is the list of best performing funds:
- Mirae Asset Tax Saver Fund
- Canara Robeco Equity Tax Saver Fund
- IDFC Tax Advantage Fund
- Kotak Tax Saver Fund
- Nippon India Tax Saver Fund
- SBI Long Term Equity Fund
How can you start Investing in ELSS funds online?
To invest online in ELSS funds, kindly follow the following steps:
- Login to Portal
- Select New Investments under invest now category
- Select ELSS or Tax saver category
- Select the fund you want to invest into
- Click on transact now
Who can invest in ELSS funds?
There is no hard and fast rule regarding the ELSS funds’ investments. Generally salaried individuals who are resident of India tend to invest more in ELSS funds.
Which mode is best to invest in Tax saver or ELSS Funds?
There are the following types of modes available to invest in ELSSS funds:
- Lumpsum: Under this mode investor invests their money in one go in the selected schemes.
- SIP: Under this mode investor has the option to invest systematically either monthly or quarterly or half yearly.
Although both of the modes are best to invest in Tax saver funds. But SIP mode is the most convenient way to investment in Tax saver funds.
Should you redeem Tax saver funds after 3 year lock-in period?
No, there is no need to redeem funds from tax saving scheme after the lock-in period unless it is necessary to redeem. You can continue to invest in the tax saver funds and can switch to other schemes subject to better opportunities and risk-reward scenario of market.
Whether ELSS Funds are better or other Mutual Funds schemes?
The question itself is wrong, as ELSS are just like other Mutual Funds schemes. The only feature that it is catering to is tax benefit under section 80C. Once your limit of Rs. 1.5 Lakhs for the financial year is exhausted then you can look out for other mutual funds schemes depending on your investment horizon and risk profile.
Which is better ELSS or PPF?
Public Provident Fund (PPF) or Equity Linked Savings Scheme (ELSS) both are tax savings options under section 80C. PPF offers restricted return, whereas ELSS returns are not capped as they are linked to Stock Market performance.
Also, ELSS has the shortest lock in period of 3 years and PPF has the lock in duration of 15 long years.
So keeping in view the return potential, investment horizon and lock in period under consideration, ELSS are way better than PPF.
For more details, please mail at investor.care@spacapital.com or call at 9717927667.
