The main reason why we invest money is not to work hard our entire life. Till a certain age we work and then plan to reap in the rewards of our investments made in our heydays. The fruits of investment can be achieved by smart investing. A couple of ways you can achieve this, by investing smart and making it work for you. In case if you intend to make money by keeping it in your bag it does not work that way as money does not multiply. There are various avenues where you can make an investment in stocks. How to invest in ELSS has drawn in a lot of attention of late.
For an equity investor they are cautious of losing money in the stock market. When it is about smart investing means you save money and invest in profitable ventures. In case if you are having long term investment goals then mutual funds are the best source to drive you towards that goal. The main benefit of direct mutual fund app investment is capital appreciation. A better financial instrument providing you with better than inflation returns. Over a short period of time you can accumulate a lot of wealth.
The moment you plan an investment in mutual funds it is spread across various sectors cutting down the chances of loses in future. In case some stocks underperform it is compensated by the over performing stocks. In your overall portfolio risk is reduced. Even you might be having a well-diversified portfolio you cannot escape from all risks.
Each and anyone can invest in ELSS via SIP. It is possible to invest even with Rs 500 a month. You can provide an option of ECS where money would get deducted automatically from your account. This paves way for a habit of continuous saving with investment.
For whom ELSS options are suitable?
ELSS suits someone who has just started out their career but their income is taxable. They could be paying taxes in a traditional investment and might not be aware about ELSS. There is no age limit as far as ELSS is concerned. You can start when you are young or even when you are aged if you are willing to take some degree of risk. This is also a form of investment for people who are not keen to put all their eggs in a single basket. Now let us explore some of the benefits of ELSS fund
- With appreciation of capital, a long term investment option
- An ideal form of investment for persons who belong to any form of economic background
- It is possible to do investment quickly and in an easy manner
- With the concept of compounding interest you are able to earn multiple returns
- No maximum time limit for investment
To conclude ELSS not only helps you to save taxes but helps you to achieve your long term investment goals. As compared to traditional investment option ELSS offers a higher rate of return.