homepersonal finance NewsELSS mutual funds losing charm now, but expert optimistic about future prospects
ELSS mutual funds losing charm now, but expert optimistic about future prospects
Under Section 80C of the Income Tax Act, ELSS funds offer investors the opportunity to claim tax exemptions from their annual taxable income.
Equity Linked Savings Schemes (ELSS) have long been favored by investors seeking a dual benefit of tax savings and potential wealth creation through equity investments. These funds, characterised by their allocation to equities or equity-related instruments, have garnered attention not only for their tax-saving advantages but also for their return potential.
Under Section 80C of the Income Tax Act, ELSS funds offer investors the opportunity to claim tax exemptions from their annual taxable income.
According to Salonee Sanghvi, Founder of My Wealth Guide, the introduction of a new tax regime has prompted some investors to reconsider their investment allocations.
Sanghvi noted a decline in ELSS investments compared to previous years, as the new tax regime presents alternative investment avenues that are not solely dependent on income tax deductions.
However, Kshitiz Mahajan, Co-founder of Complete Circle Consultants, thinks this is just the beginning of a potential growth trajectory for ELSS funds.
Mahajan predicts that as younger individuals enter the workforce and become subject to taxation, there will be increased momentum towards ELSS investments, particularly among those earning lower salaries.
For full interview, watch accompanying video
(Edited by : Anshul)
First Published: Feb 27, 2024 6:11 PM IST
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