Tag Archives: Tax Saving Schemes

Everything you wanted to know about ELSS

An ELSS is a diversified equity fund — a mutual fund that invests in stocks and is not concentrated in a sector or market category, and is thus a less risky way to invest in the market— with a three-year lock-in. Within the tax-saving set, it is the only one that offers a pure equity exposure. If you can take the risk of equity, an ELSS is the most attractive tax-saving vehicle today, and there are three reasons to eye it like never before.

What is an ELSS?

As the name of the scheme very clearly suggests, it is a savings scheme that’s linked to equity. And these are the two most important facts to remember even after investing in an ELSS. A savings scheme must necessarily be for the long term, so it’s of no use looking at short-term returns from an ELSS. ELSS is a mutual fund similar to any diversified equity mutual fund that routes your investments into equity markets. However, it stands apart from a regular mutual fund in one major way. ELSS carries a tax benefit on the amount invested, and therefore you have to lock-in your investment in an ELSS for three years.

Features of ELSS

Proxy route to direct stock investments
Lock-in feature provides long-term investing discipline
Provides tax saving benefits and the potential for higher returns
Flexibility to invest small amounts through an SIP

Who can buy?

Section 80C of the Income Tax Act provides tax benefits to a person who buys units of ELSS, either in his own name or jointly. Individuals, HUF

What is the minimum & maximum amount of investment?

Investments can be made through a systematic investment plan (SIP) or lump sum. When markets are volatile, SIP is a better way to invest, save tax and create wealth over a long term. Minimum Amount of investment is Rs.500. There is no limit for maximum amount of investment; however the tax advantage is only up to Rs.1lakh.

With SIP investor can take advantage of fluctuations in the stock market. So investor will get more units when the market is down and get less units when the market is up. For eg if you are investing Rs 1000 every month and you will get 100 units for when Net Asset Value (NAV) is 10 and will get 50 units when NAV is 20. So investing a fixed sum regularly helps to cover the market fluctuations by rupee costs averaging. SIPs are a tried and tested method of minimizing risk and yet enjoying good returns, by regular, periodic investment, over a long horizon.

How is Tax saved?

Investments in ELSS plans are eligible for deduction from gross total income under Section 80C of Income Tax Act. Only Rs.1lakh of investments qualifies for tax benefits under the same section. Your gross income is reduced by the amount you invest in the scheme. If you are paying a tax of 30.9% you can save upto Rs.30, 900/- on an investment of Rs.1lakh or more in ELSS.

Comparison with other options

ELSS has a lower lock-in period compared to other tax saving options. PPF, a tax-saver option is a 15year savings plan, while the National Saving Certificate carries a lock-in of 6years.

Benefits of ELSS

The three year lock-in stipulation might seem harsh, but it has its advantages, it induces discipline into your investing habits. You can lock yourself in low valuations, but also have to give your investment time to work for you. This lock-in keeps corporate money out, which means these schemes do not have to deal with sudden, large scale redemptions. Thus, ELSS tends to have more stable and optimum corpus size, which encourages good fund management.


  • Investors in ELSS under Dividend Payout Option have the advantage of getting Tax Free gains even during the lock-in period of 3 years.
  • Lowest Lock-in period of just 3 years, comparing favorably with maturity period of NSC (6yrs) and PPF (15 years).
  • Minimum investment is only Rs.500. very low entry barrier.
  • Investors in ELSS have the advantage of investing through Systematic Investment Plan.
  • Some ELSS schemes offer Free Life Insurance Cover and also Personal Accident Death Cover and even Critical Illness cover!!!
  • Historically, provided better returns than NSC, PPF and ULIPs.
  • Profits earned after the Lock-in Period is completely Tax-Free.
  • Upto Rs.1Lakh is eligible for deductions under Section 80c compared to Rs.70000 in PPF.
  • Due to its 3 year lock-in period, the Fund Manager has the freedom to invest in Fundamentally Strong Shares with huge future potential and can afford to ‘wait’ to unlock the value. Thus, it has been observed that ELSS schemes do beat (in terms of returns) even Diversified Mutual Funds more often than not.

RR Research provides unbiased and independent research in Stock Market, Equity, Commodity Prices, Stock Brokers, Tax Saving Schemes, Equiy broker, FMP, Fixed Maturity Plans, Fixed Income, Debt Market, RGESS, and Mutual Funds in India, NCD, Fixed Deposits, Equity Shares, Non Convertible Debentures and Tax Free Bonds. Visit: – http://www.allvoices.com/contributed-news/16606991-everything-you-wanted-to-know-about-elss

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Market Outlook- Gold tumbled 3 percent!

English: A 250kg gold bar in the Toi gold mine...

English: A 250kg gold bar in the Toi gold mine

Gold tumbled 3 percent on Friday after positive U.S. jobs data sent the dollar rallying and rekindled worries the Federal Reserve could be tempted to scale back its monetary stimulus later this year. The U.S. non-farm payrolls report for June showed employers added 195,000 new jobs last month, exceeding expectations of 165,000. The unemployment rate held steady at 7.6 percent.

Today’s Key Headlines

1)  Gold Market to Keep Focusing On Fed Expectations, Also Eye Egypt, ETF Flows
2)  Mideast aluminum industry in advantageous position
3)  Better-than-expected US jobs data reignite stimulus worry
4)  Dollar rally, ECB hints at lower rates hit gold further
5)  China Metal Futures Volumes Slump as Super Cycle Fades
6)  Brazil Sugar-Cane Use for Fuel Seen by Datagro above Outlook

For detail analysis report please visit: – http://www.rrfinance.com/reserch/MorningBell/Cm_MorningBell.pdf

Also find information about Indian Rupee Vs Dollar, Commodity Prices, Stock brokers, Commodity Market, Share Brokers, Equity Market, Mutual Fund, Gold prices, Life Insurance Plans, How to Save Tax, Fixed Income, Government Securities, Fixed Deposits, NCD, Tax Saving Schemes, IPO India, For more updates and news please visit:- http://www.rrfinance.com

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Equity Market Outlook – RR Equity Brokers India

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The 50-share Nifty index is expected to bounce back and open higher on Thursday tracking positive Asian markets, while investors will keep a close eye on inflation data for the month of May. Stocks in news are Hindustan Unilever, Infosys, MMTC, Wipro, Jet Airways, Apollo Hospitals, Ambuja Cements, Tata Motors and Ranbaxy Laboratories.

Today’s Key Headlines

1- Indian companies’ overseas investment trebles to $ 7.64 bn in April.

2- MNRE to launch mega-sized solar power projects.

3- DoT slaps Rs 100-crore fine on Vodafone India.

4- Telecom panel to meet on July 2 to decide on TCIL divestment.

5- Public sector banks may net higher profit on softening government securities yield in Q1: ICRA.

Read detail analysis report here:-


RR Financial Consultants‘s insight:

For more news and updates please visit:- https://www.rrfinance.com/Reserch/ResearchHome.aspx

Or Dial Toll Free – 1800110444

Also find information about Life Insurance Plans in India, Fixed Deposits, Mutual Funds, Tax Saving Schemes, Fixed Deposit Schemes, How to Save tax, Insurance Brokers in Delhi.

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Tax Saving Schemes – Equity Linked Saving Scheme (ELSS)

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RR Financial Consultants‘s insight:

Equity Linked Saving Schemes are diversified equity funds with lock – in period and offer an investor income tax exemption of 1 Lac Ruppes per section 80c of Income Tax Act.


Visit:- http://www.rrfinance.com/Fixed_Income/Tax_Saving.aspx

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RR Offers NHB SUNIDHI Term Deposit Scheme

See on Scoop.itFixed Deposit Schemes

The Fixed Deposit will be repaid only on maturity and not on demand or notice except at the discretion of the Company.

RR Financial Consultants‘s insight:

RR Investors offers NHB SUNIDHI term deposit scheme for best terns call @ 9540056975 or dial toll free 1800110444 OR Visit:- http://www.rrfinance.com/Fixed_Income/FixedDeposit.aspx

Fixed Deposit SchemesFixed Income

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Tax Saving Schemes – How to Save Tax, Plans and Instruments – RR Financial Consultants

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Tax Saving Investments – Know more about how to save tax with the help of various tax saving options like capital gain bonds, tax free bonds and tax free fixed deposits.

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