Everyone loves to see a rise in his income irrespective of the source. There are maple options with the help of which people get good income. However, with the increased income, the liability to pay income tax to the government also increases. One can also save some of the tax if he invests some amount in various sources asked by the government on which he can have tax exemption. The mutual fund is a known way of getting a higher return from the market, and one can invest in various funds here which are managed by different asset management companies. However, if one invests in normal mutual funds, it is considered only as an investment on which one cannot save tax, but there is another type of mutual funds which are known as ELSS on which one can save tax up to 150000 per year.
What is ELSS?
For a common man who has limited knowledge of mutual fund, it is the right question. The ELSS here means the Equity Linked Saving Scheme where the investment is exempted from the taxable amount till the limit of 150000. However, opposite to the normal mutual funds, this fund has a lock-in period of certain years. Usually one cannot withdraw the amount invested in ELSS for three years. One may find trouble in investing in ELSS as he may not be aware of how to invest in ELSS and here is the process that can help one get invested in ELSS.
The process of investing in ELSS:
The process of investing in ELSS is also like other options for the standard mutual funds only. Hence for one who has already experienced investing in this market, it is an irrelevant question as to how to invest in ELSS, but those who are new to it must know the process that can help them. The investor here can have two options. He can go for the investment in this fund with the help of offline mode which is also known as a traditional option or can go for the online option which is also known as a modern option.
In the offline mode, the investor needs to provide the copies of his Identity proof, address proof, cancelled cheque and PAN card. He needs to fill the form and provide it to the agent or broker who represents the concerned AMC.
In the online option, the investor can check the website or app of the AMC and subscribe for the online investment where he needs to provide a few of the personal details and transfer the payment online using any of the channels for the same.
The investor can also get the statement on his mail or prefer to have a physical copy of the same. The client is provided with a folio number with the help of which he can monitor the prices of the units and know how much benefits he has got. After the lock-in period of three years, one can take the money back or can also keep the same to have more return.