I would like to start investing in Equity Linked Savings Scheme (ELSS) from April 2016. Should I invest in ELSS in SIP mode on monthly or quarterly? Also please suggest some ELSS funds. I want to invest ₹1.3 lakh in them in the next financial year.
- Senthil Kumar
Investments in Equity Linked Savings Scheme (ELSS) qualify for tax deduction of up to ₹1.5 lakh under Section 80C of the Income Tax Act. These schemes invest mostly in equity and they have a lock-in period of three years. However, it would be better to have an investment horizon of at least five years while investing in them.
Investing through a Systematic Investment Plan (SIP) is a disciplined approach to regular investing. You should base the frequency of your SIP contributions on your convenience and cash flows. There is nothing to prove that a monthly SIP is better than quarterly SIP or otherwise. Most salaried individuals opt for a monthly SIP because it is a convenient option and it also imparts financial discipline.
This article was originally published on January 12, 2016.
Ask Value Research 
New episodes every Friday 
New Process Alert 
Seems like you've uploaded a wrong QR code. Please upload the QR code downloaded from MF Central platform.
