Everyone wishes to have a rise in the income, and for the same, they have ample of options irrespective the sources. Once there is an increase in the income, the responsibility of paying taxes to the government also increases. The various sources are also offered by the government by which one can save the tax. The investment in these sources helps in tax exemption on a certain amount. One of such sources which are well known for getting a higher return from the market is a mutual fund. Different asset management helps a person in investing. If one goes for normal mutual funds, it offers only investment which helps them to save tax on that amount, but the one who opts for ELSS mutual fund can save tax up to 150000 per year.
What is ELSS?
The ELSS here means the Equity Linked Saving Scheme which offers an exemption of the taxable amount up to the limit of 150000. However not as same to normal mutual funds, the lock-in period of certain years is stated in ELSS. The amount invested is for three years in ELSS. Generally, people are not ware as to how to invest in ELSS; they may find troubles; here is the process of investment in ELSS.
The process of investing in ELSS:
The process of investing in ELSS is much the same as investing in other mutual funds. The person who already invested in this market, the question is considered as much irrelevant as to how to invest in ELSS. But the people who are very new must have knowledge of the process for their help. The investment can be done by selecting the best mode suitable to the investor. One can opt for the same old offline mode, which is also well known as a traditional option but the most prevalent mode that is online mode can opt which is also known as the modern method.
The documents required in offline mode of investment are copies of identity proof, address proof, canceled cheque, and pan card. A form has to be filled by the person provided to him by the agent or broker who is a representative of the concerned AMC, and the same has to be filled and submitted.
While applying online, the investor needs to check the website available or the concerned app of AMC and must subscribe for the investment that has to be made online. The person needs to provide his few of the personal details as well he needs to make payment online using any of the modes or channels for the same.
The statement of the payment can be received on mail, but if the investor prefers to have a physical or hard copy, the same is provided by the company. The folio number is provided to the client that helps him to monitor the amount invested and also the prices of the units. The investor can know through foil number about the benefits he is getting. The investment has a lock-in period of three years after this period, one can take the money back, or the one can also keep the same to get more return for a further period.