Hello and welcome to FundooMoney, your 24X7 buddy for all your money matters! As the financial year heads towards a close, there is always a rush for making tax-saving investments. Equity linked savings scheme (ELSS) offered by mutual funds, allow investors to invest upto Rs 1.5 lakh annually under Section 80C for tax deduction. It is popular as it helps save tax upto the investment limit and also provides growth from equities. However, there are people who buy a new ELSS plan every year and have a collection of them. What’s the right number of ELSS plan to have? We will tell you all about them, but just in a little while.
Ideally have 2-3 ELSS There is no fixed rule for the number of ELSS you must have. However, it is a difficult task for investors to track and manage too many ELSS in a mutual fund portfolio. Ideally 2-3 schemes with a decent track record can be sufficient depending on your investment amount. This will also help you diversify adequately across different schemes and fund managers too. Examine ELSS portfolios Before investing in an ELSS, examine yourself or ask your advisor to take a look at individual portfolios of the ELSS to determine whether the schemes are different in terms of portfolio composition. There is little point in having more of the same.
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