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| Scheme Name | 1-Year Return | Invest Now | Fund Category | Expense Ratio |
|---|---|---|---|---|
| Axis Nifty 50 Index Fund | +32.80% | Invest Now | Equity: Large Cap | 0.12% |
| Axis Nifty 100 Index Fund | +38.59% | Invest Now | Equity: Large Cap | 0.21% |
| Axis Nifty Next 50 Index Fund | +71.83% | Invest Now | Equity: Large Cap | 0.25% |
| Axis Nifty 500 Index Fund | — | Invest Now | Equity: Flexi Cap | 0.10% |
| Axis Nifty Midcap 50 Index Fund | +46.03% | Invest Now | Equity: Mid Cap | 0.28% |
What makes ELSS particularly appealing is its ability to combine tax benefits with the potential for long-term capital growth, making it a popular choice for investors looking to maximise both savings and returns.
How does ELSS combine savings with tax benefits?
Investing in ELSS allows individuals to take advantage of tax deductions under Section 80C of the Income Tax Act.
Tax deductions
Investors can claim a tax deduction of up to ₹1.5 lakh under Section 80C of the Income Tax Act. This can save investors up to ₹46,800 on taxes. But these funds come with a mandatory lock-in period of three years, during which investors cannot redeem their investments, explains Alekh Yadav, Head of Investment Products at Sanctum Wealth.
Long-term capital gains (LTCG) tax
ELSS investments are taxed as LTCG, which has a lower tax rate than short-term capital gains (STCG) tax. This is because ELSS investments have a mandatory three-year lock-in period.
Systematic Investment Plans (SIPs)
“ELSS funds typically function as diversified multi-cap equity funds, investing across various market capitalisations. For individuals who have not fully utilised their Section 80C limit through other investments, ELSS can be an attractive option, providing both tax savings and the potential for equity market-linked returns,” says Yadav.
Also Read : Tax-saving fixed deposits or ELSS: Which is a better option for you?
First Published: Dec 19, 2024 6:54 PM IST
