Investment advice ELSS Funds

Hi, Kindly note that one can claim up to Rs 1.5 Lakh per annum as tax deduction u/s 80c (though there is no ceiling limit to invest in an ELSS fund). May I know the MF Scheme names? and your investment time-frame??      

Hi, If your query is related to ELSS funds, you may continue posting your follow on queries/responses here in this thread itself. Below is your response: "Time is not a constrain sir ....expected returns only after 10 to 15 years
already in sip for 10 years in
axis LTE
franklin India tax shield
both are ELSS
should I invest in these same funds more or should I opt for non Elss funds because they have higher returns."   My response: You may continue making additional investments in your existing ELSS funds. Kindly read: https://www.relakhs.com/best-elss-funds-2017-2018

Hi, By "continue making additional investments in your existing ELSS funds" I am a bit confused - does this mean ELSS work like PPF, where money is locked away for 15 years (one needs to keep investing, at least a minimum amount only) Or is it possible to come out of ELSS partially - every 3 years? eg. If I invest Rs 50k in ELSS on 1st-May-2017 and another 75k on 15th-November-2017-

in the same ELSS

. I assume I can redeem 50k on 30-April-2020 but can redeem 75k only after 14th-Nov-2020 Given this "partial redemption" - am further confused on whether I should invest using the lump-sum or SIP route in ELSS. thanks Jeevan

Dear Jeevan, The units allotted under each SIP / Lump sum investment gets locked for 3 year. There is no mandatory rule that you have to invest minimum amount every year in your existing schemes. What I mean when I say 'continue making additional investments..' is, if you are planning to invest in ELSS again, you may invest in your existing schemes itself rather selecting some more ELSS funds. Personally, I prefer to invest 2 to 4 lump sum installments in ELSS fund for tax saving instead of monthly SIPs (for convenience sake at the time of redemption).  

Dear Sreekanth,   I currently have one ELSS SIP running which I started in April this year. I am planning to stop that in March and start another ELSS SIP in the next financial year. In the third year I may or may not continue investing in ELSS. After the three year lock in period is over if I do not withdraw the money will I continue to earn returns on the two ELSS even if I stopped both in a span of one year?

Hi, May I know the scheme name? Why would you like to discontinue it and add one more fund? It is not mandatory to contribute to ELSS funds for three years..whatever you currently hold (MF units), can be held for any number of years.. kindly note that the returns on ELSS funds are not guaranteed.  When you’re invested for the long term, your average return becomes much more stable over time and it’s less likely that you’ll lose money. Various studies show that as we lengthen our investment horizon, the average annual rate of return over that timeline becomes less variable.