Tax-Saving Funds
Ninad RamdasiCategories: DSIJ_Magazine_Web, DSIJMagazine_App, Letters to Editor, MF - Letter to Editor, Mutual Fund
I really enjoyed reading your cover story on ELSS funds
I really enjoyed reading your cover story on ELSS funds. However, I would like to know whether or not it makes sense to invest more than Rs 1.5 lakhs in these tax-saving funds? - Ritika Shah
Editor Responds : As such there is no maximum limit on investing in ELSS, but I would suggest you should not invest more than the tax-saving threshold of Rs 1.5 lakhs provided by the Income Tax Act of 1961. This is because ELSS has a lock-in period of three years irrespective of the amount invested. It would be difficult if you want to switch funds or redeem your fund.