ELSS Could be Your Chance To Save Tax & Create Wealth

Tax saving & Long term Wealth creation can be two sides of the same coin when it comes to ELSS i.e. Equity Linked Saving Scheme. While there are several opportunities to help you save tax u/s 80C, ELSS also known as tax saving scheme is a one - stop solution for all your tax saving and wealth creation needs and comes with the lowest lock-in period of 3 years.

Why you should not wait till March 31, 2021

Effective from Feb 01, 2021, NAV (Net Asset Value) applicability for mutual funds have moved to realization based NAV. Which means to ensure you get the tax benefits on ELSS investments for the financial year 2020-21, you can’t wait till Mar 31, 2021 to make your investment. Moreover, as March 29, 2021 is a bank holiday in respect of festival Holi, investors need to submit the application form before Mar 25, 2021 3:00 p.m. cut off timing to avail benefit of 80 C deduction.

Let’s understand a bit more about ELSS and what are the benefits it provides over other tax saving instruments:

What are the 5 advantages of ELSS Scheme?

  1. Twin benefit: One Fund, Twin benefit; ELSS = Tax Benefits + Potential Long Term Wealth Creation.

  2. Cope better with inflation over the long term: This scheme gives you exposure to equity markets which has potential to provide risk adjusted returns commensurate with the market risk exposure, and helps cope with inflation over the long term.

  3. Save tax u/s 80C: Investments upto Rs.1.5 lakh a year in ELSS are eligible for tax deduction benefits under section 80C of the Income Tax Act, 1961.

  4. Lowest Lock-in: ELSS investment comes with a lock-in of only 3 years in the tax-saving category, making ELSS investments a relatively more liquid option. You can actually redeem your ELSS fund investment in just 3 years. This is the lowest when it comes to other tax-saving instruments. You have the option to redeem your ELSS units partially or fully after the lock in period of three years is complete.


(Note : The investments you make in NPS are locked in until the age of 60)

  1. Low Portfolio churn

ELSS generally has a low-portfolio churn due to its lock-in period of 3 years where the fund manager does not need to re-adjust the portfolio to meet frequent redemptions.

ELSS is a tax saving investment to achieve your long term goals such as child’s education or your retirement and complements your equity allocation to profit from the long term economic growth in India.

Do not miss the opportunity to save tax before the financial year ends and begin your journey towards building wealth.

in the scheme(s). The views are not meant to serve as a professional guide / investment advice / intended to be an offer or solicitation for the purchase or sale of any financial product or instrument or mutual fund units for the reader. The Article / Video has been prepared on the basis of publicly available information, internally developed data and other sources believed to be reliable. Whilst no action has been solicited based upon the information provided herein, due care has been taken to ensure that the facts are accurate and views given are fair and reasonable as on date. Readers of the Article / Video should rely on information/data arising out of their own investigations and advised to seek independent professional advice and arrive at an informed decision before making any investments. None of the Quantum Advisors, Quantum AMC, Quantum Trustee or Quantum Mutual Fund, their Affiliates or Representative shall be liable for any direct, indirect, special, incidental, consequential, punitive or exemplary losses or damages including lost profits arising in any way on account of any action taken basis the data / information / views provided in the Article / video.

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

@siva @bhuvan,

I am flagging the title of this thread. The objectionable word is ‘today’. @Quantum_AMC is misselling by spreading misinformation. Unnecessarily, it is creating a false panic by communicating that today is the last date to invest in an ELSS fund to be considered for tax-saving investment under section 80C for FY 20-21.

I had already mentioned in another thread that the way Coin functions, the deadline for consideration in FY 20-21 would be 31 March, 1:30 pm. That’s when Coin sends the orders for execution.

So to be on the safer side, keeping the required margin and placing order by 1:29 pm latest on 31 March would do the job and same-day NAV would be realized.

Please do the needful about the title of this thread.

Having said that, I certainly do not encourage anyone to wait till last minute to invest. But technically speaking, one can make an investment until 1:30 pm on March 31.

We understand the confusion, and apologize for the same. We wanted to highlight the sense of urgency in making the ELSS investment in time, in light of the extended bank holidays that follow next week. We wanted investors to be prepared in advance as 29th is a holiday. Please note that this instruction is intended for those aiming to make ELSS investment through any of the available modes.

Also, as per the latest SEBI circular which came into effect from 1st February, 2021, in respect of purchase / switch-in of units in any non-liquid scheme, irrespective of the amount, the closing NAV (Net Asset Value) of the Business Day on which the funds are available for utilization (i.e. realization based NAV) shall be applicable. Funds for the entire amount of purchase / switch-in as per the application have to be credited to the bank account of the respective schemes before the cut-off time for the scheme. So in a scenario where the investor has invested in ELSS on 31st Match, 2021 before the cut off time for subscription but the amount has been realized post the cut off time on 31st March, 2021, he or she may lose out on availing the tax benefit of ELSS investments for FY 2020-21.

Don’t worry. It wouldn’t happen so on Coin. It close the cut-off window at 1:30 and orders are executed before 2:30pm. As per BSE Star MF, if payment is made before 2:30pm, same day NAV is realised. So don’t you worry.