Trending ELSS and IDFC Tax Advantage (ELSS) fund December 4, 2019December 4, 2019 Brandwire ELSS and IDFC Tax Advantage (ELSS) fund Equity Linked Saving Scheme (ELSS) is a category of mutual fund that lets you invest in equity market for long term wealth creation while also letting you save on tax! Just like other mutual funds, these are professionally managed and typically hold investments across a variety of sectors and market caps. Investments in the ELSS category qualify for a deduction of up to INR 1.5 lakh from one’s income under section 80C of the Income tax Act, 1961. Among the other tax savings options under 80C, with a lock-in period of 3-year. However, while investing in such mutual funds, one must remember that these schemes invest in equity markets. So while they have the potential to generate higher returns than the traditionally available tax saving options (like a 5 year Bank Fixed Deposit, PPFs or other such schemes), these are market linked and hence could be volatile especially over a short period of time. Therefore one must have the necessary risk appetite while investing in equity market related schemes. IDFC Tax Advantage (ELSS) fund is an open ended equity linked saving scheme with a statutory lock in of 3 years and tax benefit. The fund follows a growth-at-a-reasonable-price philosophy. It follows a multi-cap oriented approach. The fund invests in companies based on a deep understanding of the industry-growth potential and interaction with managements. An investor can invest in a disciplined manner with as low as INR 500 every month into this scheme via the systematic investment plan (SIP) mode and avoid the last minute tax hassle. We believe, ELSS scheme is a resolution that works for years to come – IDFC Tax Advantage (ELSS) fund doesn’t just save tax but helps grow your money. Just like you don’t leave planning for your vacations to the last minute, plan your taxes in advance as well with this simple and efficient product called IDFC Tax Advantage (ELSS) fund.