What is DSP Tax Saver Fund?Posted by Kushal Khandwala on February 24th, 2021 DSP Tax Saver Fund is an open-ended ELSS equity-linked savings scheme, which provides tax benefits under section 80C of the Income Tax Act, 1961. ELSS fund (Equity Linked Savings Scheme) is a mutual fund scheme, where tax deduction from total income is available. Individuals who seek income tax deduction can save up to a lakh every year by investing in this tax-saver fund. With DSP, the lock-in period is a minimum of three years, but like in any other equity model, it is advisable to stay invested for at least 5 years to reap maximum benefits.
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Understanding ELSS:
The returns are much higher than most investment in ELSS.
Portfolio: Portfolio composition:
Each asset class has its own level of return and risk. For this reason, the investors must consider their individual risk tolerance, investment objectives, time bracket, and their money available to invest as the basis for their portfolio composition. All these aspects are important as the investors must look to create an optimal portfolio that serves their needs.
For instance, an investor with a long time bracket and bigger sums to invest might feel comfortable with high-risk, high-return options. On the other hand, investors with shorter time brackets and small sum of money may prefer low-risk, low-return assets.
Frequently asked questions:
A) Does DSP offer tax benefits under 80C? Yes. DSP offers tax benefits up to Rs. 1.5 Lakh. B) Will my profits on withdrawal be tax free?
C) What would be my predominant asset class exposure?
D) Does it offer transparency?
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