Moneycontrol
HomeNewsBusinessPersonal FinanceWant to invest in ELSS mutual funds? Use these strategies
Trending Topics

Want to invest in ELSS mutual funds? Use these strategies

ELSS has a lock-in period of 3 years and has the potential to provide you high returns linked to the market.

November 04, 2018 / 22:56 IST
Story continues below Advertisement

Navneet Dubey Moneycontrol News

When it comes to saving tax, Equity Linked Savings Scheme (short for ELSS) of mutual funds is one of the most favoured investment options. It has a lock-in period of 3 years and has the potential to provide you high returns linked to the market. Moreover, there is no limit to making investments in these schemes. However, one should devise a proper strategy while investing in ELSS to gain good returns over a period of time. The strategy is a must given the fact that the returns are dependent on stock markets and not guaranteed.

Here are four important strategies that one should adopt while investing money in ELSS.

Story continues below Advertisement

Invest in lump-sum or in SIP mode?

Harsh Gahlaut, CEO, FinEdge said that the best way to invest into an ELSS is to plan ahead by taking stock of your projected Section 80C deficit at the start of the financial year, and then start a monthly SIP to cover the gap. Not only will this make it easier on your pocket, it will also smoothen your long-term returns through rupee cost averaging.