Top ELSS Schemes for Tax Savings in 2022: A Comprehensive Guide

Tax savings in India have become an essential factor for many investors looking to reduce their taxable income through sound investment strategies. One of the most popular schemes for this purpose are Equity Linked Saving Schemes (ELSS). These funds offer not just tax benefits but also the potential for higher returns. In this guide, we will explore the best ELSS schemes to invest in 2022 and provide insights into the benefits and considerations of investing in these funds.

What are ELSS Schemes?

ELSS schemes are mutual fund products specifically designed to provide tax benefits under Section 80C of the Income Tax Act. They allow investors to claim a deduction of up to INR 1.5 lakh against their taxable income annually for a period of three years before liquidating the investment. These funds invest primarily in domestic equity markets, making them suitable for investors seeking higher returns with a moderate level of risk.

Best ELSS Schemes for 2022

Here is a list of top ELSS schemes for investors to consider in 2022:

Mirae Asset Tax Saver Fund: Known for its consistent performance and growth potential. IDFC Tax Advantage ELSS Fund: Offers a balanced approach with a focus on long-term capital appreciation. Canara Robeco Equity Tax Saver Fund: Consistently ranks among the best in the ELSS category. DSample Tax Saver Fund: Provides diversification and risk management options. Kotak Tax Saver Fund: A well-diversified fund that has shown strong performance over the years.

Benefits of Investing in ELSS Mutual Funds

1. Shortest Lock-In Period (3 years): Unlike other tax-saving schemes, ELSS funds have the shortest lock-in period, allowing investors to exit after three years if needed.

2. Potentially Higher Returns: By investing in ELSS schemes, you can achieve better returns compared to traditional bank fixed deposits and post office schemes.

3. Hassle-Free Regular Investing: Automatic investment plans (Systematic Investment Plans or SIPs) make regular investing convenient and stress-free.

4. Better Post-Tax Returns: ELSS funds can provide higher post-tax returns due to their growth in equity markets.

Picking the Best Mutual Fund

Picking the best mutual fund can be a complex task. Traditional methods of calculating returns may not always be accurate. However, utilizing advanced algorithms can help investors make informed decisions. According to our analysis of the last 28 years of data, our iNVESTT’s Artificial Intelligence Algorithm provides an ideal blueprint for selecting the best mutual funds with the highest potential for returns.

Investing in ELSS: A Word of Caution

While ELSS funds offer several benefits, it's crucial to understand the associated market risk. As with any investment, it's advisable to diversify your portfolio and allocate assets between equity and debt to manage risk effectively.

Conclusion

Investing in ELSS schemes can be a strategic way to save tax and achieve higher returns. With the help of advanced AI-driven algorithms, you can make informed choices and select the best mutual funds for your investment needs. Visit our website to explore the BEST MUTUAL FUNDS FROM ALL CATEGORIES.

Thank you for choosing iNVESTT for your investment needs.