ELSS Calculator

The taxability of ELSS funds after 5 years depends on what you're referring to: However, in general, after 5 years,

• The initial investment (up to Rs. 1.5 lakh) remains tax-deductible under Section 80C.

• Long-term Capital Gains (LTCG) up to Rs. 1 lakh is tax-free.

• LTCG above Rs. 1 lakh is taxed at 10%.

Choosing between PPF and ELSS depends on individual preferences and financial goals. PPF offers guaranteed returns and tax benefits, but with a longer lock-in period of 15 years. ELSS, on the other hand, potentially provides higher returns with a shorter lock-in period of three years. Investors seeking safety and stability might prefer PPF, while those comfortable with market fluctuations and aiming for potentially higher returns may opt for ELSS. It is essential to align the choice with personal risk tolerance and investment objectives for a well-suited decision.

ELSS funds provide taxable capital gains. With a three-year lock-in period, you'll only have long-term gains. Up to Rs 1 lakh a year in gains is tax-free. Any amount beyond this limit faces a 10% tax, and there's no indexation benefit, meaning no adjustment for inflation on the principal amount.

Investing a lump sum amount in ELSS depends on individual preferences and risk appetite. While lump sum investments offer immediate exposure to the market, they can be more susceptible to market volatility. Considering ELSS has a three-year lock-in, investors should assess their risk tolerance and market conditions. SIPs are an alternative, providing a phased approach and potentially reducing the impact of market fluctuations. Both lump sum and SIP investments have their merits, and the choice should align with an investor's financial goals, risk tolerance, and market outlook.

It is advised to review your ELSS portfolio periodically but avoid excessive tinkering. Focus on long-term goals and rebalance your portfolio if necessary.