There are many things involved in the stock marketing. If you are new to this field then you should take at least one to two weeks to understand the market. You cannot enter the world of funds on the basis of guesswork. Guess can help you once or twice but not always. A single mistake and you might end up losing your hard earned money.
There are different types of funds and you can even come across the Best mutual funds for tax saving once you look for them. There are funds that would get you amazing outcomes and you would not even face any tax issues. You know if you invest in ELSS of Tax Saving Funds then you get a tax deduction under Section eighty C of the Income Tax Act, 1961 for investment up to Rs one point five lakh per annum. You can also find other types of deductions in this section such as five year tax-saver fixed deposits, EPF (Employees’ Provident Fund) and even that of PPF (Public Provident Fund). In case you are willing to accept a higher danger in return for a higher potential return, ELSS funds are the finest product for tax saving under this specific section.
Don’t be in a hurry
Remember if you want to learn the art of investing in funds then you have to keep patience along. You cannot take a chance with any decision. You have to be attentive about what you are choosing and why. Remember, if you are making a decision in a hurry you might end up with disappointments. If needed you can talk to professionals and take their guidance. These experts in mutual funds are always experienced and know what is happening. They read the trends, understand the between the lines things and know what would be good for you as per your capacity. Anyhow for now have a look at some of the things related to ELSS:
ELSS has a lock-in period of three years. Once the tenure is over then you can either withdraw your money or leave it in the ELSS fund. There it will continue to earn returns.
ELSS funds invest at least eighty percent of their quantity in equity. As a result the returns can be absolutely unstable but can also compound hugely over the long term. Of course, you can always talk to experts and find out what is the meaning of specific things in your specific case.
Is there any eligibility for this?
In case your mutual fund Know-your-Customer (KYC) is done, you can easily do investment in ELSS funds. Of course, there is nothing else that you require to step in this fund.
Minimum and maximum amounts
The minimum amount relies on type of fund but can be as low as rupees five hundred. There is no maximum limit but the tax inference is restricted to contributions of rupees one point five lakh per annum. A person can invest in ELSS funds as a lump sum or as an SIP (Systematic Investment Plan). An SIP invests a static amount in a mutual fund at a regular intermission.
Thus, since you know a little about these funds, you can take the next step.