Lifetime FREE Credit Card with 10X rewards
Most Searched
Top Products
Popular Searches
Bank Accounts
Populer FAQs
Signature is important and it is required to avail various products and services. To upload your signature
1. Go to More
2. Select Customer Service Dashboard
3. Select ‘Savings/Current Accounts’
4. Select ‘Upload Signature’ to upload your signature.
That's easy! Follow these steps to track your service requests:
1. From the home page of the app, tap on "Customer Service" section
2. Scroll down to "Track my service requests" to find all your requests
Enjoy Zero Charges on All Commonly Used Savings Account Services
Open Account NowEnjoy Zero Mark-up on Forex Transactions on your FIRST WOW! Credit Card
Apply Now
Unlike the other investment instruments under Section 80C of the Income Tax Act, investing in Equity Linked Savings Scheme (ELSS) is a cost-effective strategy to reduce taxes. ELSS has a brief lock-in period and expert fund management, which can help you build wealth. This article will go over some features of ELSS funds and how you can use ELSS for tax benefits.
ELSS is the only mutual fund qualified for tax deductions under Section 80C of the Income Tax Act, 1961. By investing in ELSS mutual funds, you can get a tax rebate of up to ₹1,50,000, allowing you to save up to ₹ 46,800 every year in taxes. ELSS mutual funds invest primarily in equities and equity-linked instruments. They have the shortest lock-in duration of three years.
Here are some benefits of investing in ELSS mutual funds:
ELSS has a lock-in period of three years. Fixed deposits (FDs) have a five-year lock-in, while Public Provident Funds (PPFs) have a 15-year maturity. Hence, ELSS is a worthwhile investment instrument if you want greater liquidity.
ELSS mutual funds leverage compounding to earn returns. Compounding is a tool that earns interest on interest. The returns earned through investments in ELSS earn returns themselves, which helps increase investors’ capital.
Investing in ELSS is simple and easy. You do not need a high starting capital to invest in ELSS mutual funds. You can begin with ₹500 as well.
You should think about investing in an ELSS when:
Since ELSS uses compounding, you stand to gain more in the long run. Compound interest (also known as compounding) is the interest on a deposit computed using the principal and the interest accumulated over time.
ELSS gives you exposure to the securities market. While it carries risk, it isn’t as risky as investing directly in equities.
ELSS long-term capital gains (LTCG) are tax-free up to ₹1 lakh. Gains over that are subject to a 10% tax rate.
The ideal method to begin investing in ELSS is through regular SIPs.
Before you decide to invest in an ELSS mutual fund, you must:
To invest in ELSS funds, you must have a longer-term vision. As the markets are volatile, ELSS funds yield better returns when invested for at least three years.
You should be aware that ELSS funds do not guarantee returns because their success is dependent on the performance of the underlying stocks. Having a longer investment horizon can yield decent returns and meet your investment goals.
ELSS mutual funds have a three-year lock-in duration. Your investments will be locked in for three years, so you must know it before investing in ELSS.
You can decide your SIP amount and choose the date you want to invest. Using SIPs allows you to accumulate mutual fund units at all prices. When the market is down, you get more units, and you can earn excellent returns when it is up.
However, before investing in an ELSS, you must first complete a KYC verification process. You must submit a photo in the prescribed format, your PAN card, and valid address proof. You can invest in ELSS funds online through IDFC FIRST Bank’s mobile banking app.
Disclaimer
The contents of this article/infographic/picture/video are meant solely for information purposes. The contents are generic in nature and for informational purposes only. It is not a substitute for specific advice in your own circumstances. The information is subject to updation, completion, revision, verification and amendment and the same may change materially. The information is not intended for distribution or use by any person in any jurisdiction where such distribution or use would be contrary to law or regulation or would subject IDFC FIRST Bank or its affiliates to any licensing or registration requirements. IDFC FIRST Bank shall not be responsible for any direct/indirect loss or liability incurred by the reader for taking any financial decisions based on the contents and information mentioned. Please consult your financial advisor before making any financial decision.
The features, benefits and offers mentioned in the article are applicable as on the day of publication of this blog and is subject to change without notice. The contents herein are also subject to other product specific terms and conditions and any third party terms and conditions, as applicable. Please refer our website www.idfcfirstbank.com for latest updates.