ELSS Full Form in Banking | What is the Full Form of ELSS
ELSS Full Form - Equity-Linked Saving Scheme
- ELSS stands for Equity-linked Savings Scheme.
- It's a mutual fund investment schemes or a kind of mutual fund that assist you save income tax and provide a chance to grow money. So, it's also referred to as tax-saving funds.
- It mainly invests in equities (shares) of the businesses listed within the stock exchanges to get market-linked returns.
Full Form of ELSS
- According to the tax Act, under section 80c, the taxpayers who invest up to INR 1.5 lakh especially securities can claim it as a deduction from their taxable income.
- ELSS is one such security, and other securities include PPF, postal savings like NSC, tax-saving FDs, NPS, etc.
Features of ELSS Mutual Funds
- Some of the main features of the ELSS fund are as follows:
- These funds invest an outsized percentage of their portfolio in equity.
- They have the shortest lock-in period of three years as compared to other tax-saving instruments.
- The investors get the twin benefits of capital appreciation from investments in equity along tax-saving.
- The investors can choose dividend pay-outs if they want to receive regular income or can go the growth option for capital appreciation.
- These mutual funds don't have any entry or exit load.
- Good ELSS Funds offer returns in between 10 to 12 percent within the end of the day , which is highest among the tax-saving instruments.
- Investors get higher returns than an FD and PPF
- You can start by investing a little amount as low as Rs. 500.
- The investor doesn't got to have the knowledge of the stock markets because the funds are managed by financial experts and fund houses on their behalf.