Mr. Mittul Kalawadia, Senior Fund Manager, ICICI Prudential AMC
Equity Linked Saving Scheme (ELSS) mutual funds have emerged as a frontrunner in this regard, providing a compelling solution that caters to both financial objectives.
Understanding ELSS Mutual Funds
At the heart of ELSS funds lies a unique blend of investment principles and tax advantages. These funds are primarily equity-oriented, investing a minimum of 65% of their assets in equity and equity-related instruments. This equity focus aligns with the long-term growth aspirations of investors, aiming to generate superior returns over time.
ELSS funds are categorised as diversified equity mutual funds under the Securities and Exchange Board of India (SEBI) regulations. Their primary objective is to provide capital appreciation to investors through equity investments. Unlike other equity mutual funds, ELSS funds offer a specific advantage – tax benefits under Section 80C of the Income Tax Act, 1961. This distinctive feature makes ELSS funds a compelling investment choice for individuals seeking to reduce their tax liability while simultaneously pursuing long-term wealth creation.
This story is from the January 2024 edition of Investors India.
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This story is from the January 2024 edition of Investors India.
Start your 7-day Magzter GOLD free trial to access thousands of curated premium stories, and 9,000+ magazines and newspapers.
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