In the latest Mutual Fund Q&A brought to you every Friday we answer the question of viewer who wants to know what would be the course of action if a person loses money on ELSS investments after the end of three year lock-in period.
Edited Highlights
0:41 In this mutual fund Q&A, we take up the query of viewer Raj Kiran who wants to know how to deal with loss making ELSS investment after 3-year lock in period
2:46 Among tax saving investments, ELSS has the shortest lock in period
3:03 Consider ELSS as a long term investment as you do for other tax saving investments with a longer lock in period
3:12 While making tax saving investments, ensure each investment is earmarked for a need and then take the benefit of tax savings
3:31 Three years is too short a time for equity or equity fund investments
3:52 With the passage of time returns in equities and equity funds settle down
4:34 When ELSS doesn't do well, one needs to check whether it is due to a downturn in equity markets
5:08 Compare ELSS performance with benchmarks and peers
5:21 If your ELSS doing worse than its benchmarks and peers, move to a consistently performing equity fund
5:38 Over a period of 8-10 years or more, equities give you far higher returns than any competing investments
6:33 Important thing is to stick to equities
