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ELSS - A GOOD COMBO TO SAVE TAX AND BUILD POTENTIAL WEALTH OVER THE LONG TERM

An Equity Linked Savings Scheme (ELSS) is a diversified equity mutual fund that gives you a dual benefit of tax saving with the growth potential of equities. However, unlike other tax saving investments, ELSS has a lock-in period of just 3 years!

Salient features:

A tax saving scheme that predominantly invests in equity securities

• Managed by fund managers with experience and backed by research
• Diversified portfolio across sectors and market capitalization

Investors need to hold units for at least three years to claim a tax rebate

• Longer investment horizon increases the probability of higher risk-adjusted returns for the investor

Withdrawals from ELSS after the three-year lock-in period are tax-free up to Rs 1.25 lakh in a financial year

Flexibility to invest on monthly basis through systematic investment plans (SIPs)

• Minimum investment can be as low as Rs 500 per month
• Reduces market volatility and averages out the cost for the investor
• Investment through SIP mode is subject to lock in of three years for each investment installments.

Investments are subject to market risk, and, hence, investors must consider their age and risk appetite

Source – CRISIL. Investors should consult their tax consultant if in doubt about whether the product is suitable for them.

An Investor Education & Awareness Initiative by HSBC Mutual Fund

Visit https://grp.hsbc/KYC w.r.t. one-time Know Your Customer (KYC) process, complaints redressal process including SEBI SCORES (https://www.scores.gov.in). Investors should only deal with Registered Mutual Funds, to be verified on SEBI website under Intermediaries/Market Infrastructure Institutions (https://www.sebi.gov.in/intermediaries.html). Investors may refer to the section on ‘Investor Education’ on the website of HSBC Mutual Fund for the details on all ‘Investor Education and Awareness Initiatives’ undertaken by HSBC Mutual Fund.

Document intended for distribution in Indian jurisdiction only and not for outside India or to NRIs. HSBC MF will not be liable for any breach if accessed by anyone outside India. For more details, click here / refer website.

Mutual Fund investments are subject to market risks, read all scheme related documents carefully.