Should we invest in an ELSS fund

An opportunity to grow your money by investing in the equity market through professional fund managers.
Long-term capital gains from these funds are tax free in your hands.
The low lock-in period of only 3 years compared to other options.
You can also opt for a Dividend Payout option, thereby you may realize some profits even if the fund is locked-in for three years. Dividend from ELSS Mutual Funds are also tax free.
Apart from lumpsum, you can invest also through Systematic Investment Plan (SIP) route and thus benefit from rupee cost averaging. This means that if you start a SIP in an ELSS Fund, then each of your investments will be locked in for 3 years from the respective investment dates.
Some ELSS Funds also offer Free Life insurance.
For the current FY, you can claim deduction upto Rs. 150,000 on your ELSS investment as a deduction from your gross total income in a financial year under Sec 80C of the Income Tax Act.

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