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How many ELSS should I invest this year?

It is not a great idea to wait for the last moment to make your investments to save taxes

I want to invest ₹1.50 lakh in Equity Linked Savings Scheme (ELSS) this year. Is investing in three or four funds preferable to only one fund? Can I wait for the last month of the financial year to invest? Also, suggest some top ELSSs?
- Swaminathan S

You can invest in one or two tax saving mutual fund schemes. Investing in several schemes would make it difficult to track their performance. It is not a great idea to wait for the last moment to make your investments to save taxes. A better way would be to start a Systematic Investment Plan (SIP) in a tax saving mutual fund scheme at the beginning of the financial year. This method will impart financial discipline and it will also help you to stagger your investments over 12 months. This will help you to average your purchase cost and enhance your returns over a long period.

Here is a list of our top tax saving schemes.

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