InvestorQ : Can I invest in Equity Linked Saving Schemes (ELSS) online?
Aastha Awasthi made post

Can I invest in Equity Linked Saving Schemes (ELSS) online?

Mary Joseph answered.
1 year ago
Equity Linked Saving Schemes (ELSS) is a type of diversified equity mutual fund where most of the corpus is invested in equity and equity-related products. ELSS funds have a lock-in period of three years. They are financial products that aid tax savings. According to the Income Tax Act, a person can invest up to Rs1.5lakh/annum in ELSS under section 80C to save tax. They have the lowest lock-in period (i.e. 3 years) among all the investment instruments available under section 80C.

To invest in an ELSS fund online you need to do the following-

Choose the fund: There are many AMCs offering ELSS. You need to closely analyze and choose the best performing one. A financial platform like IIFL will give you access to a number of tools like a fund screener that will assist you in making an informed decision.

Get your KYC done: No individual is allowed to make mutual fund investments in India without undergoing the KYC process. For this, you can either visit the website of the mutual fund you have chosen to invest in or a financial platform like IIFL which will help you make a choice from a plethora of scheme options and assist you with your KYC process.

Decide the mode of investment: You can invest in mutual funds directly, or a distributor. With the direct investment, you invest directly with an asset management company (AMC), there would be no third party involved. Distributors are firms/companies typically selling mutual funds online.

Decide between lump sum or SIP: SIP and lump sum are two ways of investing in mutual funds. SIP allows you to invest a fixed sum on a regular basis while lump sum investments are a one-time investment made upfront.