Many people are now looking forward to investing in some plan given the cost of everything is just rising day by day. We are indeed worried about the future and want to make our future financially secured. So you must be also looking for some investment plan to invest in. Among all the plans you can consider long term equity fund. It is safe and gives you great returns.
Long term equity fund is an Equity Linked Saving Scheme or ELSS or a tax saving scheme. The investments in an ELSS help you to save a tax amount of up to 1.5 lakh in a financial annum. This is according to the Income Tax Act, Section 80C. These kinds of schemes come with a necessary lock-in period of maximum three years. It means that you can not sell these schemes during this lock-in period. You can use these schemes and build your retirement plans. But for that, first, you have to understand the nature of these schemes.
Right away, you can start investing with whatever you have to invest in this scheme. Though, you should increase your investments in order to build a decent retirement corpus. Always remember to invest a small amount frequently over a long period of time. It is the best way to build a large amount of corpus. You will be surprised by the result of this kind of long term investment. The feature of compounding interest will definitely help you to multiply your wealth over a period of 20 to 25 years.
There is an update regarding ELSS or tax saving mutual fund schemes. As there is no recommendation you can go on investing and holding on to your investments in the tax saving schemes. The ELSS category is offering 9.58 per cent returns in the last year. With long term financial goal and high risk tolerance, you must go ahead and invest in ELSS funds for saving on taxes. ELSS fund investments qualify for a tax deduction of up to 1.5 lakh according to the Income Tax Act, section 80c.
Our recommended schemes have higher exposure to mid-cap stocks and small-cap stocks. Many market analysts are predicting there will be a revival of small and mid-cap stocks but they are languishing because of the bad sentiment of the market.
Investors should understand a few factors before they invest in these schemes. You should be avoiding investing in ELSS as they have potential to superior return over a long period of time. If you have the risk appetite to invest in an equity scheme, then only invest in ELSS. Equity is a risky business and can also become volatile in the short term.