With taxation season just round the corner, it’s time to sort through and plan your finances wisely. You still have a few weeks left in hand, till March 31, 2023, to analyse and understand how you can invest your hard-earned money in the most suitable manner possible, without having to pay it all away in taxes.

With a wide variety of tax saving products available, you need to choose smartly. Do you want something that just saves taxes, or would you prefer a product that gives you the dual benefit of tax savings and investment planning that is aligned with your financial goals? Definitely the latter, right? Then Equity Linked Savings Scheme (ELSS) is what you are looking for.

The fund can lend a helping hand by reducing your tax burden without compromising on your end goal of wealth creation.

Something About Equity Linked Savings Schemes

Equity Linked Savings Schemes, popularly known as ELSS, are basically equity mutual funds with an added tax benefit. But that is not all. There is more to ELSS funds than just this.

Also Read - What is ELSS?

3 Reasons You Need Equity Linked Savings Schemes

So, what makes ELSS funds so attractive? Here are 5 reasons investors favour ELSS funds over other tax-saving options:

1. Long term Wealth Creation:

   When it comes to making profits, most investors turn to equity and equity-related instruments. ELSS funds invest primarily in equity and equity related instruments making them a favoured choice for investors looking for wealth creation opportunities. However, with wealth creation comes the burden of taxation.
   
   Also Read - What is wealth creation ?

2. Shorter lock-in period:

   Longer lock-in periods in certain investment avenues are a major concern for many investors. In this case too, ELSS funds score over other funds. Lock-in under ELSS (3years) is lower than other tax saving investment avenues available today.
   
   Shorter lock-in period means higher liquidity. Need we say more?

3. Saving through SIP:

   Just like all other mutual funds, ELSS funds provide the facility of Systematic Investment Plan (SIP). This is especially conducive for first-time, young investors who can start investing with as little as Rs. 500. Moreover, the option of Step-up SIP allows investors to increase their invested amount as and when their income increases. The regular, disciplined and gradually ascending tool of SIP goes a long way in making your financial goals come true.
   
   Also Read – What is SIP?

Conclusion

It is said that money saved is money earned. ELSS funds are proof that this can indeed be true. By saving tax and smartly investing your money in ELSS funds, you can make your money grow, rather than let it sit idle. So, give it a thought, consult your financial advisor, and give your money the ability to earn for itself with ELSS Funds.

Mutual Fund investments are subject to market risks, read all scheme related documents carefully.