ELSS (Equity Linked Saving Scheme) and NPS (National Pension System) are two popular investment avenues in India, – ELSS vs. NPS, primarily known for their tax-saving benefits and potential for long-term wealth creation. Both options offer tax deductions under different sections of the Income Tax Act, making them attractive choices for individuals looking to save on taxes while also investing for their future financial goals.
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Best ELSS funds to invest in 2021
The best ELSS funds to invest in 2021 are those that have a strong track record of performance and are well-diversified. While there are many different ways to measure performance, one important metric to look at is the fund’s Sharpe ratio. This measures the risk-adjusted return of a fund, which is a good way to compare different funds.
Another important consideration when choosing the best ELSS funds to invest in is the fund’s expense ratio. This is the amount of money that the fund charges investors every year as a percentage of the total assets under management. The lower the expense ratio, the more of the return that investors get to keep.
Finally, it is important to consider the fund’s diversification. This is important because it helps to mitigate the risk of investing in a single stock or sector. A diversified fund will typically have a mix of stocks from different sectors and industries, as well as different geographical regions.
The best ELSS funds to invest in 2021 are those that have a strong track record of performance, are well-diversified, and have a low expense ratio. Some of the best ELSS funds to consider include the following:
1. Motilal Oswal MOSt Focused 25 Fund
This fund has a strong track record of performance, with an annualised return of 15.1% since its inception in 2010. The fund has a low expense ratio of 0.91%. The fund is well-diversified, with a portfolio that includes stocks from different sectors and geographical regions.
2. Birla Sun Life Tax Relief 96
This fund has an annualised return of 14.7% since its inception in 2005. The fund has a low expense ratio of 0.5%. The fund is well-diversified, with a portfolio that includes stocks from different sectors and geographical regions.
3. Axis Long Term Equity Fund
This fund has an annualised return of 13.8% since its inception in 2009. The fund has a low expense ratio of 0.69%. The fund is well-diversified, with a portfolio that includes stocks from different sectors and geographical regions.
Best ELSS funds for SIP
When it comes to planning for your future, there are a lot of different options available to you. One option that you may be considering is investing in an ELSS mutual fund. ELSS funds are a type of mutual fund that allows you to enjoy the benefits of tax-saving while also growing your money over time.
There are a lot of different ELSS funds available on the market, so it can be tough to know which one is right for you. If you’re considering investing in an ELSS fund, here are some of the best ones to consider for a SIP:
1. Axis Long Term Equity Fund
Axis Long Term Equity Fund is a great option for those looking for an ELSS fund to invest in. This fund has a track record of delivering strong returns over the long term, and it also has a low expense ratio.
2. DSP BlackRock Tax Saver Fund
DSP BlackRock Tax Saver Fund is another great option for those looking for an ELSS fund to invest in. This fund has a strong track record of delivering returns, and it also has a low expense ratio.
3. ICICI Prudential Tax Saver Fund
ICICI Prudential Tax Saver Fund is another solid option for those looking for an ELSS fund to invest in. This fund has a good track record of delivering returns, and it also has a low expense ratio.
4. Kotak Tax Saver Fund
Kotak Tax Saver Fund is another good option for those looking for an ELSS fund to invest in. This fund has a strong track record of delivering returns, and it also has a low expense ratio.
5. SBI Magnum Tax Gain Scheme
SBI Magnum Tax Gain Scheme is another great option for those looking for an ELSS fund to invest in. This fund has a good track record of delivering returns, and it also has a low expense ratio.
These are just a few of the best ELSS funds to consider for a SIP. When it comes to choosing an ELSS fund, be sure to do your research and choose one that fits your
Best ELSS funds for long term investment
When it comes to long-term investment, both ELSS (Equity Linked Savings Scheme) and NPS (National Pension Scheme) are great options. However, there are certain key differences between the two that make one a better choice than the other, depending on your investment goals.
ELSS vs. NPS: The Key Differences
1. Investment Horizon
ELSS funds have a lock-in period of 3 years, while NPS funds have a lock-in period of 10 years. This means that if you’re looking for a long-term investment option, NPS is the better choice.
2. Tax Benefits
Both ELSS and NPS offer tax benefits. However, the tax benefits of ELSS are higher. ELSS offers a deduction of up to Rs. 1.5 lakhs under Section 80C of the Income Tax Act, while NPS offers a deduction of up to Rs. 2 lakhs under the same section.
3. Risk Profile
ELSS funds are equity funds, which means they are subject to market risks. NPS funds, on the other hand, are debt funds, which means they are relatively less risky.
4. Returns
ELSS funds have the potential to generate higher returns than NPS funds, but they are also subject to higher risks.
5. Liquidity
ELSS funds are more liquid than NPS funds. This means that you can withdraw your money from an ELSS fund before the completion of the lock-in period, but you will be subject to a exit load. With NPS, you can only withdraw your money after the completion of the lock-in period.
6. Investment Flexibility
ELSS funds offer more investment flexibility than NPS funds. With ELSS, you can choose to invest in a lump sum or through systematic investment plans (SIPs). With NPS, you can only invest through SIPs.
7. Asset Allocation
ELSS funds give you the freedom to choose your asset allocation. With NPS, your asset allocation is decided by the government.
Best ELSS funds for tax saving
When it comes to saving on taxes, there are a few options available to investors. Two of the most popular options are ELSS and NPS. Both have their own set of pros and cons, and choosing the right one depends on the individual’s investment goals and risk appetite.
ELSS funds are equity-linked saving schemes that invest in a diversified basket of equity stocks. They have a lock-in period of 3 years, after which the investor can withdraw the money. ELSS funds offer the twin benefits of tax-saving and the potential for capital appreciation.
NPS, on the other hand, is a retirement planning tool that allows the investor to invest in a mix of equity, debt and government securities. NPS has a mandatory lock-in period of 60 years, and the investor can withdraw only a portion of the corpus at retirement. NPS does not offer the same tax-saving benefits as ELSS, but it is a more long-term investment option.
So, which is the better option for you? If you are looking for a short-term investment option with the potential for capital appreciation, ELSS funds are a good choice. However, if you are looking for a long-term investment option for retirement planning, NPS could be a better option.
Best ELSS funds with high returns
There are a number of investment options available for those looking to save for their future, but two of the most popular are ELSS and NPS. Both have their own advantages and disadvantages, so it’s important to understand the difference between the two before making a decision.
ELSS, or Equity-Linked Savings Scheme, is an investment option that is linked to the stock market. This means that the returns are based on the performance of the stock market, which can be volatile. However, ELSS also has the potential to provide higher returns than other investment options, such as fixed deposits.
NPS, or National Pension Scheme, is a government-sponsored retirement savings scheme. It offers a number of benefits, such as tax breaks, but the returns are not linked to the stock market. This means that the returns are more stable, but they may not be as high as with ELSS.
So, which is the better option for you? It depends on your individual circumstances and goals. If you’re looking for higher returns, then ELSS may be the better option. However, if you’re looking for stability and peace of mind, then NPS may be the better choice.