Should you invest in ELSS through lump sum or SIP? Do equity funds reward over four years? Do you pay tax after getting liquid fund maturity proceeds?
Edited Highlights
1:27 Amit Belwal asks if investment in ELSS should be made with an annual lump sum or some other way?
1:39 We think that you should be investing in ELSS through systematic investment plans (SIPs)
1:58 Investors don't have time to invest lump sums which involves tracking the market and timing the market, which individual investors also can't do successfully
2:13 Unless you put the lump sum money in an systematic transfer plan or STP, you need to track the markets
2:47 SIPs help you take the benefit of the highs and lows of the market and lower the average cost of buying the ELSS units
5:12 This is a unit linked insurance plan from SBI Life
8:52 Sesha Niranjan asks whether it is okay to invest for four years in an equity fund
9:12 The ideal period of staying invested in an equity funds is 8--10 years. You can move to another equity fund if your equity fund is not doing well for 18-24 months
9:20 You can't do that in ELSS since it has a three year lock-in
9:28 When it comes to four years, it depends on how much risk you can take
9:42 Consider long term debt funds if you are not looking at taking up risk
9:47 For growth from equities, consider balanced funds which typically invest 65% or more in equities
10:39 Much depends on the goal for which you are saving the money
12:24 Jaswinder Singh wants to know whether the tax for liquid funds is paid at source or after receiving the redemption proceeds
