Thank you for the response. One more query i have. Do elss fund beneficial for house wife like me who do not pay tax(as I don't come in tax bracket). Means if I invest in elss. How can I claim tax saving suppose if i earned good amount of money in a financial year from elss. Do I need to do anything for this like to fill any form at redemption etc. I am talking about online process purchase/redemption of elss tax saving mutual funds. Pls. Suggest.

Ans: Stagger it in 10 to 12 months and the funds that may be considered are as under:

- Axis Long Term Equity Fund Regular Growth

- Parag Parikh Tax Saver Fund - Regular Plan-growth

Ans: For tax-saving purposes, ELSS (Equity Linked Savings Scheme) funds are an excellent option as they offer tax benefits under Section 80C of the Income Tax Act while providing the potential for long-term wealth creation through equity investments. When selecting an ELSS fund, consider factors such as historical performance, fund manager expertise, expense ratio, and investment strategy. Look for funds with a consistent track record of delivering competitive returns over the long term. It's advisable to consult with a financial advisor or conduct thorough research to choose the ELSS fund that aligns with your investment goals and risk tolerance.

Ans: Hello and thanks for writing to me.

It is difficult to predict the best performing fund over a period, however, given that ELSS funds carry a 3 year lock-in, you can consider investing in a combination of:
Samco ELSS Tax Saver Fund
Kotak ELSS Tax Saver Fund
ABSL ELSS Tax Saver Fund

Ans: Looking to save tax on your long-term capital gains is a smart financial decision! Here's how ELSS (Equity Linked Saving Scheme) funds can help:

ELSS and Long-Term Capital Gains:

Tax Exemption: ELSS investments offer tax exemption up to Rs. 1.5 lakh under Section 80C.

Long-Term Benefit: If you hold your ELSS units for over one year, gains exceeding Rs. 1 lakh are taxed at a concessional rate of 10%.

Your Scenario:

Long-Term Gain: Your Rs. 1.46 lakh long-term gain can potentially be exempt from tax if invested in ELSS before the end of the financial year.
Using ELSS to Offset Gains:

Amount to Invest: While you can invest any amount in ELSS, to offset your entire gain, you'd need to invest an amount that after considering expense ratio (fund fee) leaves you with Rs. 1.46 lakh. A Certified Financial Planner (CFP) can help calculate the exact amount.
Important Reminders:

Lock-in Period: ELSS comes with a 3-year lock-in period. You cannot withdraw your money before that.

Market Volatility: Equity markets are volatile. Invest for the long term (5+ years) to ride out market fluctuations.

Benefits of Consulting a CFP:

Investment Strategy: A CFP can assess your risk tolerance and financial goals and suggest a suitable ELSS fund or a combination of funds for your investment.

Portfolio Review: They can review your existing investments and recommend how ELSS can fit within your overall portfolio strategy.

ELSS is a great tax-saving tool, but remember, it's also an equity investment. Consider consulting a CFP to ensure it aligns with your financial goals!

Best Regards,

K. Ramalingam, MBA, CFP,

Chief Financial Planner,

www.holisticinvestment.in

Ans: Here's an overview of the mentioned funds:

SBI Balanced Advantage Fund: This fund follows a dynamic asset allocation strategy, aiming to provide capital appreciation and income generation over the long term. It adjusts its equity and debt allocation based on market conditions, offering downside protection during market downturns. It's suitable for investors seeking a balanced approach to investing with lower volatility.
SBI Equity Hybrid Fund: As an equity-oriented hybrid fund, SBI Equity Hybrid Fund invests primarily in a mix of equity and debt securities to provide capital appreciation and income generation. It's suitable for investors with a moderate risk appetite looking for a blend of growth and stability in their investment portfolio.
Quant ELSS Tax Saver Fund: This fund falls under the ELSS (Equity Linked Savings Scheme) category, offering tax benefits under Section 80C of the Income Tax Act. Quant ELSS Tax Saver Fund primarily invests in equity and equity-related instruments with the potential for long-term capital appreciation. It's suitable for investors looking to save tax while participating in the potential growth of the equity market.
PGIM India ELSS Tax Saver Fund: Similar to Quant ELSS Tax Saver Fund, PGIM India ELSS Tax Saver Fund is an equity-linked savings scheme aiming to generate long-term capital appreciation while providing tax benefits. It invests predominantly in equity and equity-related securities across market capitalizations. It's suitable for investors seeking tax-saving opportunities with exposure to the equity market.
Before investing in any fund, it's essential to consider factors such as your investment goals, risk tolerance, investment horizon, and past performance of the fund. Additionally, consult with a Certified Financial Planner to ensure that the selected funds align with your overall financial plan and objectives. Keep in mind that past performance is not indicative of future results, and diversification is key to managing risk in your investment portfolio.