Finance

In a world where your smartphone is your gateway to convenience, it’s frustrating when your mobile banking app feels more like a maze than a helpful tool. But fear not! We’re here to untangle the complexities and present a solution that will change the way you bank on the go. Let us explore a host of FREE features that will simplify and elevate your mobile banking experience.

10 unique features of the mobile banking app

Here are the 10 unique features that your mobile banking app must have.

1. Instant balance check

We’ve all been there – curious about your account balance during a shopping spree or just before a night out. With many mobile banking apps, you can quickly check your account balance without even logging in. Simply swipe down on the app’s login screen, and voilà! Your balance appears. No more waiting or navigating through menus – it’s all about instant gratification.

2. Quick and secure fund transfers

Need to split the bill with friends or send money to family? Some apps let you do it seamlessly. Transfer funds instantly between your accounts or to other bank accounts with NEFT, IMPS, or UPI. Plus, with its cutting-edge security measures, you can rest assured that your transactions are safe and sound.

3. Bill payments made breezy

Gone are the days of writing checks or standing in line to pay bills. Mobile banking apps like IDFC FIRST Mobile Banking App lets you pay your utility bills, credit card bills, and more, all from the comfort of your phone. Set up recurring payments, and never miss a due date again.

4. One-tap mobile recharge

Say goodbye to scratch cards and long recharge processes. Top up your prepaid mobile numbers or DTH connections with a single tap on the app. It’s swift, hassle-free, and takes the chore out of staying connected.

5. Manage your debit card

Lost your debit card? Don’t panic. You can temporarily block or unblock your card using the app. You’re in control. And if you’re travelling, set up international usage or modify daily transaction limits – all within the app.

6. Keep an eye on transactions

Stay informed about your recent transactions effortlessly. Some apps provide real-time updates on your debit and credit activities, helping you spot any unauthorized or unfamiliar charges.

7. Locate ATMs and branches

Heading out and need cash? You can use the app to locate the nearest IDFC FIRST Bank ATMs and branches. No more wandering around in search of an ATM – we’ve got you covered.

8. Invest in fixed deposits

Planning for your future has never been simpler. Explore and invest in fixed deposits through the app. You can view the interest rates, calculate maturity amounts, and make investments with just a few taps.

9. View and download detailed statements

Need to review your monthly statements or access your e-statements for verification? It’s a breeze with the app. View, download, and even share your statements with ease.

10. 24/7 customer support

Got questions, or facing an issue? The major banking apps provide access to 24/7 customer support. Reach out anytime, anywhere, and get the assistance you need.

In a fast-paced world, mobile banking apps are designed to keep up with your lifestyle. From quick balance checks to secure fund transfers and bill payments to managing your debit card, major mobile banking apps offer a treasure trove of features that aim to simplify your financial journey.

Political events have a significant impact on stock market investing. The decisions made by governments and political leaders can create both opportunities and risks for investors. Understanding the relationship between politics and the stock market is crucial for making informed investment decisions. In this article, we will explore the various ways in which political events influence the stock market and provide insights into how investors can navigate this dynamic landscape. Check more on how to invest in Share Market

Policy Changes: Political events often result in changes to government policies, regulations, and legislation. These changes can have a direct impact on specific industries, causing stock prices to fluctuate. For example, when a government announces new regulations or tax policies that favor renewable energy, stocks of renewable energy companies may rise. Conversely, policies that impose stricter regulations or increase taxes on certain industries may lead to a decline in stock prices. Investors need to stay updated on political developments and understand how policy changes can affect their investments.

Economic Stability: Political events can significantly impact a country’s economic stability. Elections, political scandals, or changes in leadership can create uncertainty and volatility in the stock market. Investors may become cautious and adopt a wait-and-see approach during such times, leading to market fluctuations. Moreover, political events can influence fiscal and monetary policies, which can impact inflation rates, interest rates, and economic growth. These macroeconomic factors play a vital role in determining stock market performance. Check more on how to invest in Share Market

Global Relations: Political events also have repercussions on international relations, trade agreements, and geopolitical stability. Trade wars, diplomatic tensions, or changes in global alliances can impact industries that rely heavily on international markets. For instance, tariffs imposed on imports can disrupt supply chains and impact the profitability of businesses. Investors need to consider the global implications of political events and assess the potential risks and opportunities for their investments.

Sentiment and Market Psychology: Political events can significantly influence investor sentiment and market psychology. Public perception of political stability or instability can impact investor confidence, leading to market volatility. Negative political events such as political unrest, corruption scandals, or geopolitical conflicts can create fear and uncertainty among investors. Conversely, positive political events like successful elections or policy reforms can boost investor confidence. Understanding the psychological impact of political events is crucial for investors to make rational decisions and avoid knee-jerk reactions. Check more on how to invest in Share Market

Sector-Specific Impacts: Political events can have varying impacts on different sectors of the economy. For example, healthcare stock may be affected by changes in healthcare policies, while defense stocks may be influenced by defense spending decisions. Investors should analyze how political events can affect specific sectors and adjust their investment strategies accordingly. Diversification across sectors can help mitigate risks associated with political events.

Conclusion:

Political events have a profound influence on stock market investing. Policy changes, economic stability, global relations, investor sentiment, and sector-specific impacts are just a few of the ways in which politics can impact the stock market. Successful investors understand the interconnectedness between politics and the stock market and adapt their investment strategies accordingly. Check more on how to invest in Share Market.

Credit card scams have been part and parcel of the user experience since the first card was ever printed. With that being said, scammers and fraudsters have only gotten better at their jobs over the years. For that reason, Mark Hauser of Hauser Private Equity took it upon himself to share some keen insights about credit card fraud as well as how to overcome the situation when it presents itself.

What Is Credit Card Fraud

Credit card fraud is an umbrella term that refers to several different forms of illicit and non-consensual credit card use. A fraudster can acquire a lost or stolen card, purchase information off of the Dark Web, or even clone a copy of a credit card through the use of a card skimming machine. Purchases can be made before the victim ever notices that their card has gone missing, thus leading to adverse outcomes for their credit and financial security.

Common Types of Credit Card Fraud

• Lost or Stolen Card
• Cloned Credit or Debit Card
• Purchased Card Information Online
• New Account Registration Fraud

Identifying and Overcoming Credit Card Fraud

Mark Hauser has been working in his position at The Hauser Group since 1995, helping to build the company up throughout the years. Over that time, Hauser has come to understand several ways that individuals can identify and potentially overcome credit card fraud.

Let’s look at a few of Hauser’s best ideas for avoiding becoming a victim of fraud.

• Diverse Password Portfolio – One of the biggest sins of credit card security is the over-reliance on a personal password to maintain our network of accounts. Use a diverse portfolio of passwords that are changed regularly to protect your account.
• Avoid Public WiFi – The internet can be a scary and dangerous place for your credit card, so avoid going online and shopping when utilizing public WiFi. Unsecured wireless networks are a risk to you and your financial future.
• Use Secured Websites – Make it a point to shop on platforms that are secured. You can find out if a platform is secured by looking for a padlock icon to the left of the HTTPS section of the address bar.
• Don’t Save Online Details – Finally, Mark advocates getting into the habit of clearing out your card details when using the internet. A merchant’s platform may offer to remember your account information for your next login. Don’t let it!

If you run into an issue with your card, it is up to you to contact the bank that issued the card. Mark Hauser advocates quick and thorough responses, including the changing of all passwords, pins, and security details. Additionally, cardholders may reach out to the FTC before contacting Experian, Equifax, and TransUnion.

As businesses grow, so do their financial needs. Keeping track of financial transactions can be overwhelming and time-consuming for companies, especially when dealing with large amounts of data. This is where bookkeeping software comes in handy.

Bookkeeping software helps businesses manage their finances by automating bookkeeping tasks, reducing errors, and increasing efficiency.

UK bookkeeping software is a popular choice for businesses in the UK as it is designed to meet the specific financial reporting requirements of the country. UK bookkeeping software is developed by companies that understand the unique tax laws and accounting standards in the UK, making it the best UK bookkeeping software for businesses in the country.

However, implementing new software can be challenging, and getting staff to use it effectively can be even more difficult.

In this article, we will provide you with some tips on how to train your staff to use UK bookkeeping software effectively.

1. Start with the basics

Before you dive into the complexities of UK bookkeeping software, it is essential to start with the basics. Make sure your staff understands the fundamental principles of bookkeeping, such as debits and credits, balance sheets, and profit and loss statements. This will help them understand how the software works and why it is essential to use it correctly.

2. Provide training and resources

Once your staff has a basic understanding of bookkeeping, it’s time to provide them with training and resources to help them use the software effectively. Look for training courses or online tutorials that are specific to the UK bookkeeping software you have chosen. Provide access to user manuals, FAQ guides, and other resources that can help your staff answer their questions and troubleshoot issues.

3. Use a sandbox environment

A sandbox environment is a test environment that allows users to practice using software without affecting live data. Using a sandbox environment will give your staff the opportunity to explore the UK bookkeeping software without the risk of making costly mistakes. It will also help them become familiar with the software’s functionality and features.

4. Provide ongoing support

Implementing new software can be overwhelming, and your staff may have questions or concerns even after completing training. Provide ongoing support to help them navigate the software and troubleshoot issues. Encourage them to ask questions and seek help when needed.

5. Encourage collaboration

Encourage your staff to collaborate and share their knowledge and experience with each other. This will create a supportive learning environment and help your staff develop new skills and techniques for using the UK bookkeeping software effectively.

6. Set realistic goals

Set realistic goals for your staff to achieve when using the UK bookkeeping software. These goals should be specific, measurable, achievable, relevant, and time-bound. For example, you could set a goal for your staff to reconcile bank statements within a specific timeframe or produce accurate financial reports on a monthly basis.

7. Monitor progress

Monitoring your staff’s progress is essential to ensure that they are using the UK bookkeeping software effectively. Use software tools to track usage and identify areas where additional training may be required. Review reports and financial statements regularly to ensure that they are accurate and reflect the business’s financial position.

In conclusion, UK bookkeeping software is an excellent tool for businesses in the UK to manage their finances efficiently. However, implementing new software can be challenging, and training staff to use it effectively is essential for success. By starting with the basics, providing training and resources, using a sandbox environment, providing ongoing support, encouraging collaboration, setting realistic goals, and monitoring progress, you can train your staff to use UK bookkeeping software effectively and improve your business’s financial performance. Remember, the best UK bookkeeping software is only as good as the staff using it, so invest in their training and development.

Tax is an unavoidable yet essential part of life, and it certainly pays to have a comprehensive plan in place for taxes. Investing in 80C tax-saving investments can be an ideal way for responsible taxpayers to save on taxes while ensuring their financial future is secure. While all tax saving investments under 80C can be beneficial, ELSS mutual funds are one efficient way to both save on taxes and invest for long-term growth.

Learn more about ELSS mutual funds and what additional benefits they have to offer over other 80C tax-saving options.

What is an ELSS mutual fund?

An ELSS mutual fund is an equity-based fund that invests mainly in stocks and shares of listed companies. Since they come with a tax benefit, ELSS funds are also known as tax saving mutual funds. In India, investments up to Rs. 1.5 lakhs (under section 80C) can be claimed as deductions from taxable income each year. This deduction helps ELSS investors reduce their tax liabilities significantly and make more money available for other investments or savings.

Furthermore, the ability to invest in ELSS online through a lump sum or a systematic investment plan (SIP) allows you to choose exactly how and when you want to invest, giving you more control over your finances.

Advantages of investing in ELSS mutual funds over other tax-saving options

• Flexibility and maximum liquidity

The lock-in period for ELSS investments is three years, which is much lower than the five or ten-year lock-in periods for other tax-saving instruments like public provident fund (PPF) (15 years), tax-saving bank FD (5 years) or the national savings system (5 years). This means that you have a shorter time frame to plan your investments and accrue returns while still being able to enjoy the same tax benefits.

Note that redeeming ELSS funds after three years is not mandatory, you can continue to stay invested.

• Diversification and portfolio diversification

Another advantage of investing in ELSS mutual funds is portfolio diversification. Since these schemes invest primarily in equities with a mix of large-, mid-, and small-cap stocks, they provide exposure to multiple sectors, which helps reduce market risks and volatility compared to investing in individual stocks directly. This means that if some stocks start performing poorly in your portfolio, others may pick up and help you maintain your overall performance level.

• Long-term capital appreciation through equities

Since ELSS funds invest predominantly in equity instruments, they are market linked and thus offer higher returns than other 80C investments. Note that, unlike PPF, you don’t get fixed returns with ELSS funds. The returns depend on how well the underlying stocks perform in the market. But if you can stomach the volatility and invest for a longer time frame, the returns can be significantly higher than the fixed-income products.

Conclusion

There are other 80C tax-saving options available, but ELSS funds offer all the advantages of mutual fund investment, including the potential for greater returns and increased diversification, plus an added bonus of getting your investment back in as early as three years. Knowing that you have this flexibility emphasises why many investors prefer to invest in ELSS funds over other 80C tax-saving options. For additional security, it is advisable to seek the assistance of a financial advisor who can help make decisions based on your financial capacity, risk appetite, and expectations from the scheme.

Like any app, Using a trading app for investment has its pros and cons. Here in this article, we are going to discuss the up and downs things of the application which we will be discussing here in the article.

Pros:

Convenience: Trading apps allow investors to access real-time market data, place trades, and manage their portfolios from their smartphones or tablets, which makes it easy to stay on top of market movements and make quick decisions when necessary. This means that investors can make trades at any time and from anywhere, making it easy to react to market changes or news.

Accessibility: Trading apps can provide access to new investors or those who may not have the time or resources to invest in traditional ways using the Best Stocks App.

Real-time market data: Many trading apps provide real-time stock quotes, charts, and other market data, which can be used to make informed investment decisions. This can be particularly useful for day traders or other investors who rely on real-time market data to make trades.

Portfolio management: Trading apps make it easy to manage your portfolio, many apps allow users to view their portfolio in real-time, as well as track their performance over time. This can be useful for investors who are looking to monitor their investments and make adjustments when necessary.

Tools and resources: Many trading apps offer a variety of tools and resources that can help investors make informed decisions, such as educational resources, research tools, and financial calculators or the Best Stocks Apps.

Cons:

Limited research capabilities: Some trading apps may not have the same level of research capabilities compared to web-based platforms, which can make it harder for investors to make informed decisions. This can limit the investor’s ability to make informed trades, especially for those who are new to the market.

Risk of addiction: Trading apps can be addictive, and it’s easy to fall into the trap of constantly checking stock prices, which can lead to impulsive decision-making. This can lead to investors making decisions based on emotions rather than logic, which can lead to poor investment decisions and losses. You can avoid the same using the Best Stocks App.

Limited customization: Some trading apps may not have the same level of customization options compared to web-based platforms, which can make it harder for investors to tailor the app to their specific needs. This can limit the investor’s ability to make trades based on their personal preferences using these trading apps.

Security concerns: Some trading apps may not have the same level of security compared to web-based platforms, which can make it easier for hackers to steal personal information. This can compromise the investor’s account and result in significant financial losses.

In conclusion, trading apps can be a convenient and easy way to invest on the go, but it’s important to consider the pros and cons before using one. It’s important to do proper research, and make sure that the app has the necessary features and resources that meet the investors’ specific needs. Additionally, investors should also be aware of the potential security risks and take the necessary precautions to protect their personal information and investments using Market Trading App.

Forex trading is a speculative form of investment that involves buying and selling currencies to profit from market fluctuations. As one of the largest financial markets in the world, forex trading offers traders access to a potentially lucrative investment opportunity.

However, it is essential to recognise that there are many risks associated with this investment, so it is crucial for anyone considering getting involved in forex trading do their homework and learn about all aspects of this complex market before diving in headfirst.

High volatility

The first thing to understand about forex trading is that it can be highly volatile, which means prices can change rapidly during any given day or even within seconds. Managing your risk carefully and using stop orders to prevent significant losses is essential.

Trading platforms

Another critical consideration when trading forex is the trading platform that you use. There are many different types of software available, so it is essential to find one that suits your preferences and offers all the features you need. It would help if you also researched user reviews and ratings to ensure that other traders have had positive experiences with any platform you are considering.

Market fundamentals

In addition to understanding the basics of forex trading, it is also essential to learn about some key market drivers that can affect prices in this market. Market fundamentals such as interest rates, inflation rates, trade balances, employment levels, and central bank policies can significantly impact exchange rates, so staying up-to-date on news and events that may affect trading is essential.

Forex terms and definitions

Anyone involved in forex trading should familiarise themselves with the many essential terms and definitions used in this market. The most common include currency pairs, pips, spreads, leverage, margin, and pipettes. Learning about these and other concepts before investing in forex can improve your skills and limit your risk.

What role does technical and fundamental analysis play in forex trading?

Technical analysis is an essential tool for traders in the forex market, as it provides information about price trends and patterns that can help you predict future movements. This analysis relies on historical price movements, trading volume, and other market indicators to determine how prices may move in the future.

While technical analysis alone cannot guarantee success in the forex market, it can be a valuable resource for traders who want to minimise risk and increase their chances of generating profits. Whether you are new to forex trading or an experienced investor, understanding the basics of technical analysis can help you make more informed decisions about your investments.

Fundamental analysis is another important consideration when trading forex. This analysis relies on economic indicators such as interest rates, inflation levels, employment data, and other factors to determine the future price movements of currencies.

Why do UK traders use a forex broker?

It is essential to understand the crucial role of brokers in forex trading. Forex brokers are essentially the middlemen between traders and the market, and they can provide valuable support and guidance when embarking on a forex trading journey. Look for a broker that provides comprehensive educational resources and advanced tools to help you succeed in this competitive market.

What are the benefits of using a forex trading platform?

There are many benefits to using a forex trading platform, including access to advanced trading tools and research resources, competitive pricing, and the ability to leverage your funds for more significant investments.

Additionally, most platforms offer 24/7 customer support, so you can get help whenever needed. Ultimately, choosing a reputable forex trading platform is essential for anyone looking to start investing in the forex market.

The final word

With these fundamentals in mind, if you are considering getting involved in forex trading, starting with a solid understanding of the market and all its risks before diving in is essential. By researching and using a reliable trading platform, you can take advantage of the many opportunities in this exciting and lucrative market.

You might not feel like you have a firm grasp on your finances because you might be employing a budgeting strategy that doesn’t work. While not everyone requires a precise, balanced budget, having a budgeting approach or template is crucial if you want to understand where your money goes each month. There are many different budgeting frameworks, including the 70-20-10 budget.

What is the 70-20-10 budget?

The 70-20-10 budget gives a loose budgeting approach that streamlines what may be a challenging procedure, similar to other budgeting principles such as the 50-30-20 rule. Your post-tax income is into three categories by the 70-20-10 budgeting rule: monthly expenses, savings, debt repayment, and charitable contributions.

Make 70:20:10 your rule

The simplicity of the 70:20:10 rule is one of its significant features. Distribute your funds among them. It’s done. However, the amount of money it may earn you is enormous. As you pay off your debts and get your bills under control, you acquire a better understanding of your finances and can start building a healthy savings account & investment options.

Spending accounts for 70% of income

You would first need to be able to survive on 70% of your income. 70 percent of your take-home earnings, or net income after taxes, to be precise. Therefore, you must include all of your needs in this area and any expensive extras.

Once you know your weekly or monthly take-home pay, you may use basic algebra to determine what 70% of that amount would be. You must keep all of your living expenditures under that amount.

Set aside 20% for investments and savings

According to the 70-20-10 budget, you should save or invest 20% of your income. If you don’t already have one, you can contribute some of your income to an emergency fund or use a high-yield checking account to benefit from compound interest or power of compounding. This not only ensures that you will have money when you need it, but it also increases your overall income.

Use the remaining 10% for charitable contributions or debt reduction

The remaining ten percent of your budget is allocated to charitable giving or debt repayment. This debt category applies to obligations that aren’t immediately due, such as making further student loans or medical debt payments. On the other hand, minimum fees, such as those for credit card debt or auto loans, typically fit within your monthly expenses.

How do you ‘bucket’ your money?

The 70:20:10 guideline and bucketing your money are complementary budgeting strategies that require dividing your funds among certain uses. Using your bank accounts for bucketing might be beneficial because most today offer simple internet access to monitor your balance and transaction history.

It’s time to fill your buckets once you’ve decided on a bank and have everything set up. The simplest method to put the concept into practise is to set up recurring transfers from the account into which your money is paid to top up each of your distinct buckets. If you set this up with online banking, you could be less likely to manually forget to transfer the funds each pay period. Doing this can ensure that the money is saved in your buckets before you need it.

Conclusion

By dividing your money into these predetermined categories, you may better manage your daily expenditures, stay on top of your debt, and have the ability to accumulate savings. The 70:20:10 guideline can be complemented by the budgeting strategy known as bucketing, which divides your money into many accounts, each with a specific function, to help you keep track of where you might be overpaying.

UPI or Unified Payment Interface has revolutionised banking transactions. Payments through mobile phones have become very easy thanks to the UPI payment apps. You can pay someone just by scanning a quick response, i.e., a QR code. UPI apps differ from the initial version of net-banking facilities.

Both banks and non-banking institutions work in collaboration to manage UPI apps and payments. Whether you are an iOS or Android user, you can download and use the UPI payment app.

What is UPI payment and how to do it?

UPI payments are alternatives to online fund transfers such as IMPS, NEFT, RTGS etc. These are fast, secure, and reliable and, you can transfer funds up to 2 lakhs per day within seconds.

After opening a bank account online, you can easily pay people. UPI banking apps have eviscerated the need to carry cash nowadays. Payment with UPI apps involves the following simple steps:

• Log into the account and click on the option that allows you to carry out payments
• Either select a beneficiary from the contact or type the mobile number of the beneficiary
• Type the amount you want to pay and then validate the transaction by entering the OTP sent to you through SMS.

Now that you know what UPI bank apps are, let’s look at the benefits of these apps:

• Payments can be completed within a minute:

In the past, if you wanted to deposit a high-value sum into another account, you needed to visit the bank in person. Conversely, with UPI apps, you don’t need to adjust your schedule anymore. With a few simple clicks, payment can be completed within a minute. Moreover, you can carry out the payment at whatever time. Be it in the middle of the day or even the midnight, UPI apps don’t have any time restrictions.

• These apps have simplified payments:

Before UPI apps, to transfer money to another bank account, you needed to enter the bank account number and the bank branch IFSC code. But with these apps, all you need to do is either scan the QR code or enter the mobile number or UPI ID of the one you are sending money.

• Opening an account has become easier:

Before the introduction of net-banking services, even the smallest banking services required you to visit the bank physically. Be it making a payment or track expenditures, offline banking took time. But nowadays, these services can be completed quickly. For example, you are thinking of signing up for a current account. Instead of visiting the bank physically, you can complete the current account opening on the app. All you need to do is fill in the application form and provide official documents that could verify the information provided on the form.

• You could make use of the auto-pay feature:

One of the most salient features of UPI apps is the feature of auto-payments. Through this feature, you need to set up a standing instruction with the bank to automatically deduct a certain sum from your bank account for payment on a set date. For example, With IDFC FIRST Bank’s mobile banking app, you can mandate standing instructions for utility bill payments, mutual fund SIPs, and credit card payments.

The National Payments Corporation of India (NPCI) which has launched UPI apps has created a payments platform that’s both hassle-free and cashless. It is very easy to understand and use a UPI app.

Investors look for investment possibilities to get consistent returns, build wealth over the long term, and reduce taxes. Although many investment opportunities result in earnings, they are taxed by Income Tax regulations.

An investor can properly save on income taxes by making investments in well-known tax-saving securities. The Equity Linked Savings Scheme, also known as ELSS funds, is one of the best tax-saving options.

What are ELSS Mutual Funds?

Under Section 80C of the Income Tax Act of 1961, an individual or HUF may deduct up to Rs. 1.5 lacs from their total income by investing in an equity-linked savings scheme (ELSS).

As a result, if an individual invested Rs. 50,000 in an ELSS, her total taxable income would be reduced, lowering her tax liability.

The lock-in period for these programs is three years from the date of unit allocation. The units can be redeemed or swapped after the lock-in period has ended. ELSS provides dividend and growth alternatives. Systematic Investment Plans (SIP) are another avenue for investors, and contributions up to 1.5 lakh made in a fiscal year are eligible for tax exemption.

Features of ELSS Funds

Lowest Lock-in Period: When it comes to tax-saving investments, equity-linked savings schemes have the shortest lock-in Period. After a three-year lock-in period, the assets may be revised. ELSS funds may provide a greater return than public provident funds, traditional tax-saving fixed deposits, national pension plans, and others.

Save Tax: Under section 80C of the Act, investments in ELSS funds offer a tax benefit of up to 1.5 lakh. It enables tax savings and higher earnings. Utilizing tax deductions aids you in planning your taxable income.

Investment method: SIP or lump sum investments are both acceptable for ELSS. Rupee cost averaging is available while investing in SIP mode, saving the hassle of making a single large investment. As a result, investing in the SIP method does not feel expensive.

Management of the invested sum: ELSS are managed by experts familiar with market circumstances and aware of market ups and downs. These fund managers are in charge of overseeing all investments made through ELSS.

Tax Treatment In ELSS Funds

One of the most often used strategies for tax planning is equity-linked savings schemes, or ELSS funds, which are mutual funds that save on taxes. Because the returns are based on stock market performance, these funds may produce higher returns than other tax-saving instruments. The majority of ELSS funds’ corpus is typically invested in equity.

Under Section 80C of the Income Tax Act of 1961, you are eligible for an income deduction for ELSS of up to Rs. 1.5 lakh in a fiscal year. This results in tax savings of Rs. 46,800 if you are in the highest income category.

Reasons to invest in ELSS Funds

Pay less and get more

You can claim a deduction and lower your taxable income by up to Rs. 1,50,000 annually under Section 80C of the IT Act.

Trading without money

ELSS investments have the shortest lock-in period of Section 80C investments, at just three years.

Convert into delivery

If you fall under the highest tax bracket and fully utilise Section 80C provisions, investing in ELSS Mutual Funds will help you save up to Rs. 46,800 annually.

Final Thoughts

Investors must evaluate the long-term profits of various schemes before investing because ELSS investments are for the long term. All ELSS plans devote at least 65% of their funds to equity funds and the remaining portion to debt. A decent strategy for choosing an ELSS scheme is to consider the scheme’s historical performance over a five to ten-year period, the consistency of the fund and company, and how long the fund manager has been managing the fund.

Make sure the scheme’s portfolio includes a variety of large, mid, and small-cap stocks since this will allow it to provide positive returns over different market cycles. Plans that invest in various companies and industries are also better able to endure any cyclical market turbulence. For returns greater than any other tax-saving investment strategy, investors must hold their investments for at least five to seven years.