Investment Planning

Investment in ELSS Scheme has a lock-in period of 3 years. Considering the volatility in the stock markets, it is better to invest through SIPs, save tax and create wealth over the long term. Typically, they are known as tax plans, and can be bought through intermediaries, such as banks, distribution houses, brokers and individual agents. One may also buy ELSS directly from fund houses or from the Websites of such fund houses. The entry load in ELSS, as in any other MF scheme, is nil. The entire investment participates in the stock market, and based on the scheme’s net asset value (NAV), units get allotted. NAV is the applicable net value of each unit on any particular day.

Using ELSS to meet goals
Put to use the tax benefit of ELSS to your advantage. Spread your investments in 2-3 ELSS for the sake of diversification across market capitalization and fund managers. Consider the long-term performance as against its benchmark, volatility, small-, mid- and large-cap exposure before zeroing in on a particular scheme. The pedigree of the fund also plays an important role. Don’t buy or invest in a fund simply because its NAV is lower than its competitors. Keep financial goals in mind. Every ELSS adopts different stock picking strategies. Some schemes maintain a large-cap focus and are suitable for investors who have a low risk profile. On the other hand, funds that have greater exposure to small- and

  • Market Overview by
    Mr. Navneet Munot,
    CIO, SBI Mutual Fund