Learn To Choose The Best ELSS Mutual Fund With Highest Performance

Posted by yashi ganguly on December 22nd, 2017

Saving money is one of the mainstays of financial prudence. The rationale of most of the savings is as a security for the future. Most of the saving options are not high on interest and are more focused on offering security for the money saved. There do exist investment options which carry a higher amount of risk but can provide great returns as well.  Mutual funds try to have a middle ground between these two and offer less risk and higher returns on the money saved. Equity Linked Saving Schemes (ELSS) mutual funds are a good way of earning the money saved. Investing in the best ELSS mutual fund helps in earning higher returns on the investment.

ELSS mutual funds are also a great way to saving taxes. These funds are tax exempted and hence one of the most sought out options for individuals looking at saving tax. Choosing wisely and investing in a good mutual fund would have the double benefit of tax savings as well as higher returns on the money invested. There is an element of risk to invest in mutual funds due to them being linked to equity which is a volatile parameter to base on. However, this risk element can be overcome by doing a research and identifying the highest performing mutual fund over a period of time and investing in them.

The investment in these types of funds can be either a lump sum or through SIP (systematic investment plan), wherein a fixed amount is invested into the mutual funds at regular intervals. Most of the financial experts suggest the SIP method as it is a less burdensome and more feasible option by allowing investment in small amounts. The best ELSS mutual fund provides various plans for investment as well as returns. It is always advised to take valued opinion from the experts in choosing the best plans for investing in mutual funds.

The mutual funds do not in principle guarantee a high rate of return as they are linked to the performance of the equity that the funds invest in. However, it has been observed that the highest performing mutual fund would be able to offer consistent and higher rates of return. This is mainly due to the choice of the equities that the fund manager decides to invest on. The fund managers need to be able to observe the market trends and manage the investments accordingly.

By Aarti Shukla