ELSS or Equity Linked Saving Scheme is a type of Equity Mutual Fund that brings together the benefits of tax saving and capital appreciation. The government has offered tax rebates to investors. So that more people are attracted to invest in Mutual Funds. The companies get funded by this. The more the general public is investing. ELSS Funds are called Equity Mutual Funds because a significant portion of the corpus is invested in Equities.
ELSS Calculator proves to be an extremely helpful tool. It facilitates in making the right decision of investing. You will be able to evaluate how effective or not an investment will be. It helps in choosing the Best Mutual Fund Investment. You can find out whether an investment would be effective or not in meeting your financial goals.
ELSS
Investment in ELSS funds can be made either by SIP (Systematic Investment Plan) or by Lump Sum. They have a lock-in period of 3-years. The units redeemed, sold, or transferred for a period of 3-years. Still the duration of ELSS investment is lower than other Tax Saving Investments. Such as the National Pension Scheme, National Saving Schemes, Public Provident Funds, etc. The returns are, also, generally higher as compared with other investments.
These are the only Tax Saving Mutual Funds as specified u/s 80C of the Income Tax Act, 1961. Under this section, you can claim a deduction of up to a total of Rs. 1.5 lakh in one financial year, on all the investments, specified.
ELSS Calculator for SIP Investment
Elss calculator: SIP: WealthBucket
SIP is the best way to invest. Whether you are investing in Mutual Funds or Recurring Deposits. It is a kind of disciplined savings of small amount. The general public, working 10-hours a day, 6-days a week, to make a living. We are only able to scrape off a tiny amount from our monthly incomes to save and invest. Introducing SIP to Mutual Funds has helped us to earn higher returns. We are also able to avoid the pitfalls of investing in Equities. Therefore, SIP has become one of the most preferred modes of investing.
If you are considering investing in Mutual Funds in SIP mode, an ELSS SIP Calculator comes in very handy. Using it you can calculate the end results of your investments. How much money you will receive at the end of investment tenure? It is a crucial question. The answer to this question can be obtained through the SIP Calculator. And because this question gets answered, you can make a definite and accurate decision about investing. It calculated the Returns offered on your best SIP. Whether it is Equity, Debt, Liquid, or Balanced Fund.
You would need to input some details. First the Amount of investment. Next comes the Annual Rate of Return. Lastly the Duration in Years. The calculator will then generate the final amount you may be receiving at the end of the investment period. Of course, the Rate of Return, that you would put in, is only an estimate. It is based on past performance. The future Returns cannot be guaranteed.
An Example: Let’s say you plan to invest Rs. 5,000 per month. And the expected Rate of Return is 15%. In the end, you put 3-years. The value of your investment, finally, is coming to be more than Rs. 2,25,500. Use the SIP Calculator putting different details to understand the working.
Just keep in mind, the Calculator depends on the details that you feed into it. As the Rate of Interest is an estimated amount, the value is not an absolute one either. The Interest rate fluctuates with the market. Besides, the Tax Benefits and Inflation rates are also factors to be considered.
ELSS Lump Sum Calculator
When you have enough investible amount as a surplus. The surplus may have occurred due to an inheritance, a huge bonus, pending fees, or some other reason. This is called a Lump Sum. Though it comes with a lot of many catches. Still, nobody can deny the lucrativeness of investing your Lump Sum in Mutual Funds. To avoid the pitfalls, you need to invest intelligently and diligently. Select the best one on the basis of its past performance. You would need to time the market, as per the NAV. And wait for the most opportune moment to invest. If the Fund’s NAV has peaked. You are advised to refrain from investing your surplus. The most appropriate time is when the market or the NAV is closer to its year’s low. And it is highly probable that the fund’s value will be appreciated soon.
Just like an ELSS SIP Calculator, the Lump Sum Calculator helps in calculating the end results of investing a huge sum of money. You are able to figure out what your investment will fetch. At the end of a particular period and with a certain rate of interest. Do remember that the Lock-in period of 3-years is mandatory, in case of ELSS Funds. So that has to be invariably included in the details you key in.
You can check how much your investment will generate. After these many years. At this interest rate. It lets you understand how long you need to hold your investment. To accomplish the financial goal that you have set.
The ELSS Lump Sum Calculator doesn’t consider the Tax charged in its calculation.
An Example:
Let’s say you want to invest a Lump Sum amount of Rs. 50,000. The Annual Rate of Return is estimated to be 15%. The duration you plan to hold onto is 5-years. It will come to be a bit more than double your investment amount, i.e. Rs. 1,00,500.
You can input different combinations, to understand better the working.
Do remember, the Interest rate fluctuates with the market. And the calculator cannot take into account the Tax Benefits and Inflation rates.
When the time comes to file your income tax returns, wouldn’t you like to put your best foot forward? Wouldn’t it be great if you were already invested in mutual funds that promise high returns and provide tax benefits under Section 80C of the Income Tax Act?
Equity-linked Savings Scheme (ELSS) is perhaps the only viable tax-saving investment to serve all these purposes. The amount you invest in ELSS plan reduces your total taxable income.
Come, invest with WealthBucket. We have a wide range of services on offers related to Mutual Funds. These are Liquid mutual fund, Large Cap mutual fund, Income mutual funds, Short term Mutual Funds or Multi-Cap mutual fund, to name just a few.
Call us at +91 9999379929. You can also email your queries at contact@wealthbucket.in.
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