CNN Central News & Network–ITDC India Epress/ITDC News Bhopal: As we step into the fourth quarter of the financial year, tax planning takes centre stage for many investors. However, people often view tax saving and wealth growth as two separate investment buckets.
What if there was a way to get both benefits in one place? ELSS mutual funds give investors an option to bridge this gap, combining the benefit of tax savings under Section 80C of the Income Tax Act, 1961 (eligible for Old Regime) and long-term growth potential through equities.
The newest entrant in this space is the Bajaj Finserv ELSS Tax Saver Fund. Launched by Bajaj Finserv Asset Management Limited, Period, this scheme opened for subscription on December 24, 2024. The NFO period will on till January 22, 2025.
This article tells you more about ELSS funds and Bajaj Finserv AMC’s latest scheme.
Why ELSS is your best tax-saving partner
For Indian investors, Section 80C of the Income Tax Act, 1961, has long been an effective way to reduce taxable income and continues to be a popular choice for investors who have opted for the old regime of the Income Tax Act, 1961. Under this section, investments of up to Rs. 1.5 lakh per scheme in various schemes can be deducted from the taxpayer’s taxable income. There are several schemes eligible for this benefit, including:
Contribution towards PPF.
Employees’ Provident Fund (EPF)
Tax Saver Fixed Deposits.
Life insurance premiums
National Savings Certificate
However, these traditional avenues usually prioritise stability and offer low or moderate return potential. ELSS funds, on the other hand, provide market-linked returns while also offering tax benefits. They invest at least 80% of their portfolio in equities. As a result, they offer investors the potential to build wealth over time, though they come with high risk, unlike the more traditional avenues.
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