Want to save for your child’s education? Learn how to claim tax deductions on Equity-linked Savings Scheme

Equity-Linked Savings Schemes

What are Equity-Linked Savings Schemes and How Can They Help with College Savings?

Equity-Linked Savings Schemes (ELSS) are an investment option that can help parents save for their child’s college education. ELSS are mutual funds that invest in stocks and bonds, and offer tax benefits to the investor.

  • They have a minimum lock-in period of three years, which means that the investor cannot withdraw money until the end of this period.
  • ELSS also have higher returns than other similar investment options, making them an attractive choice for college savings. In this article, we will explore how ELSS can help with college savings and what factors to consider before investing in them.
  • How ELSS can help with college savings :Investing in ELSS is a safe option because it will gain the investor’s money steady, reliable returns.
  • The investor’s money is invested in stocks and bonds of companies selected by the fund manager, which means that the investments are diversified.
  • Other investment options like stocks and bonds can get high returns but have a high risk of losing all of the invested funds. An investor’s earnings are also exempt from capital gains tax if they decide to sell their ELSS shares after three years.

What are the Benefits of Investing in ELSS Funds?

  • Equity-Linked Savings Schemes funds are a type of mutual fund that offers investors tax benefits and the potential for high returns.
  • Investing in Equity-Linked Savings Schemes funds can provide a number of advantages, such as tax savings, diversification of investments, and the potential for higher returns than other types of investments.
  • This article will discuss the benefits of investing in Equity-Linked Savings Schemes funds and how they can help you achieve your financial goals.

How to Claim Tax Deductions on

Equity-Linked Savings Schemes Investments?

  • ELSS or Equity Linked Savings Scheme is a type of mutual fund that provides tax deductions under Section 80C of the Income Tax Act.
  • Investing in ELSS funds can be a great way to save on taxes and also generate long-term wealth. In this article, we will discuss how to claim tax deductions on ELSS investments.
  • We will cover topics such as understanding the ELSS structure, eligibility criteria for claiming tax deductions, and other important considerations.
  • Understanding the ELSS StructureELSS funds are mutual funds that invest in debt and equity securities like stocks, bonds, and debentures.
  • Investments in ELSS are tax-exempt investments as long as they fall under Sections 80C and 20 of the Income Tax Act, 1961.1 The allocation of investments varies across different schemes but typically ranges from 30% to 70%. In some cases, it is possible to invest more than 70% of the total investment amount in a single asset class.

Tips for Choosing the Best ELSS Funds When Saving for Your Child’s Education

  • Saving for your child’s education can be a daunting task, especially if you are unfamiliar with the different types of investments available.
  • One great option is to invest in ELSS (Equity-Linked Savings Scheme) funds. ELSS funds provide tax benefits while also offering the potential for long-term growth.
  • In this article, we will discuss some tips to help you choose the best Equity-Linked Savings Schemes funds when saving for your child’s education. We will look at factors such as diversification, fund performance, and risk tolerance to help you make an informed decision about which ELSS funds are right for you and your family.

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