The Open Ended ELSS
Scheme, seeks to generate long-term capital appreciation through a diversified portfolio of equity and equity related securities.
comes with a lock-in period of three years, investors also look forward to regular rewards and income.
EQUITY- LINKED SAVING SCHEMES ( ELSS
) Also known as a tax saving mutual fund, ELSS
enjoys the distinction of having the shortest lock - in period among the options available under Section 80C.
funds are known to generate good returns over the long run.
As per our calculation, Edelweiss ELSS
Fund, with a score of 113, is the most aggressive, followed by ICICI Prudential Tax Saver (71) and BNP Paribas Long Term Equity (62).
Mutual funds are synonymous with ELSS
with the exception that ELSS
has a three year lock-in period unlike other mutual funds that are liquid and flexible.
If you invest in an ELSS
on January 2015, your money will be locked-in till January 2018.
Retirement is a few years away for most of us and, hence, one can look at investing in a phased manner in ELSS
options of top- rated mutual funds as equities are good wealth creators over long periods.
Morningstar Award Source: Fidelity Tax Advantage Fund - Dividend has been awarded the Morningstar Fund Award (India) in the 'India Open-Ended ELSS
(Tax Savings)' category for its one and three-year performance ending December 31, 2010.
Mutual funds is one such example of flexible and liquid funds that can be redeemed at any time, with the exception of ELSS