ELSS Calculator

Amount of Investment

₹1000
₹10,000,000

Frequency of SIP

Expected Rate of Return P.A

%
0%
40%

Duration of Investment

0 yrs
30 yrs

ELSS Calculator

ELSS Calculator is a useful tool that helps investors understand the prospective profits from an investment in an ELSS fund. Based on the type of investment, such as a lump payment or a systematic investment plan, the calculator calculates the possible returns.

What is ELSS?

Mutual funds that save on taxes are called equity linked savings schemes (ELSS). Open-ended equity funds with a three-year lock-in are ELSS funds. They put the bulk of their resources into stock investments. Only these mutual funds are eligible for a yearly tax deduction of INR 1.5 lakhs under section 80C of the Income Tax Act. ELSS mutual funds offer higher returns than PPF and FD, which are other tax-saving solutions. ELSS funds have the shortest lock-in time of all the tax saving choices. With just INR 500, one can begin investing in ELSS funds. They have the option of making a lump sum investment or investing via a SIP.

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ELSS Calculator (FAQs)

For investors who are willing to accept some risk, ELSS investments are the best tax-saving choice available. ELSS mutual funds also have the shortest lock-in time out of all the Section 80 C tax-saving plans. The ELSS calculator primarily aids investors in calculating investment returns. The benefits of Scripbox's ELSS Calculator are as follows:

  • A free calculator available online makes it simple to calculate the maturity amount
  • Investors may easily calculate the maturity value for a variety of investment amounts, evaluate returns, and determine the value of their investment.
  • Results from the calculator are prompt and precise.
  • The results from SIP and lump sum investments can be compared by investors.
  • The ELSS calculator is easy to use and doesn't call for any specialised knowledge. The calculator does all computation after receiving the necessary information.

The ELSS calculator is based on the straightforward idea of an investment's future worth. Based on the inputs, the calculator determines the investment's future worth. Though it may not be arduous, estimating the future worth of an investment takes time. The calculator finishes the identical task in a matter of seconds The formula for future value is,

FV = C(1+r)^t

FV stands for future value,

The investment is C.

The anticipated rate of return is r.

The investment's time horizon is t.

ELSS funds are for investors who want to cut their tax bill while investing in stocks and increasing their exposure to them. These funds are also available to investors seeking diversified mutual fund options. Unlike other tax-saving options, ELSS is not a choice for investors seeking fixed returns. Because ELSS invests in equity, its returns are market-linked and therefore subject to change.

Under section 80C of the Income Tax Act, investments in ELSS funds are eligible for a tax exemption of up to INR 1.5 lakhs. ELSS funds are taxed similarly to equity funds because they are open-ended equity funds. A three-year lock-in period for ELSS means that short-term capital gains are not an issue. They are, however, subject to a 10% long-term capital gains tax on gains exceeding INR 1 lakh.

ELSS funds invest in stocks, as their name suggests, and like any other market-linked mutual funds, they are exposed to market risks. By making long-term contributions to the fund, you can reduce this risk, though.

To reduce their tax burden, the majority of investors purchase ELSS near the end of the fiscal year, although this may not be the best course of action. Tax savings are a crucial factor to take into account when investing in these funds, but they shouldn't be the main driver. Investments made with a long-term perspective are the most effective strategy to maximise returns from these funds. Decide on your investment goals at the start of the year and use SIPs to make the necessary investments. Regularly investing throughout the year can lessen your exposure to market volatility and gradually increase your wealth.

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