ELSS - Tax Saving Mutual Funds (Hindi) - YouTube

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Namaskar, my name is Mukul, and welcome to Asset Yogi.

Friends, in this video we are going to discuss a very important topic that is ELSS.

ELSS means Equity Linked Savings Scheme.

Many people want to invest in ELSS.

Because here you also get tax benefits, If there are tax benefits then it is a natural thing.

We would like to invest in this only when we are doing our tax planning.

When do we do tax planning, normally January to March,

When we have to submit our investment proofs in our company then we do our tax planning.

which is wrong in my opinion,

You should do your tax planning from the beginning of the year itself.

That is, you should do your tax planning only from April, June, or May.

Why am I saying this, we will talk about this during the video

Now let's talk about ELSS,

There are two major reasons people want to invest in ELSS.

Firstly, you get good returns because it is a type of mutual fund.

Here your money is invested in the stock market,

A fund manager is who manages your entire funds

So here you get good returns.

You have another benefit of tax,

As you get a tax rebate on other investments under section 80c,

It is also available in ELSS.

Because of these two reasons, we want to invest in ELSS.

But we have a lot of questions related to that.

Like how much will we get returns, and the returns you will get

Will there be any tax on them?

Long-term Capital Gains Tax was introduced last year, Will it be applicable in this?

Now we have to invest so should we invest in SIP or invest a lump sum.

If we invest in SIP then How will the locking period start?

When I'm making my investments,

What if I am making different investments,

So will the new locking period be applicable for each investment?

And how should we select the right fund

Should you take a growth fund or should you take a dividend fund?

Large Cap, Midcap, Smallcap,

Aggressive, balanced.

We will answer all these questions in this video

And with this, I am going to give you some bonus tips as well.

So stay tuned in this video.

Music

First of all, let's talk about the Advantages.

ELSS has three main advantages.

We already talked about two in the introduction,

First, here you get slightly higher returns, compared to other investments.

If you see all the investments of Tax Investment So in that, you have the best option of ELSS.

Here you get 13% Analyzed Returns when we talk about a long time.

That is when you will see the annualized returns of 5 years, 7 years.

So you will see that here you can easily get returns of 13% or 14%

And the second benefit is that you also get tax benefits.

Under section 80c.

Your investment limit of 1.5 lakhs under section 80C, ELSS also comes under it.

The third benefit is that here your risk is greatly reduced.

If you invest directly in shares, so you must have a lot of knowledge

and your risk increases significantly,

If you buy the wrong shares, then your loss also becomes very high.

Your ELSS funds are managed by a manager.

There, along with the knowledge of the fund manager,

It is also an advantage that they diversify

Study different stocks and they invest your money in different stocks.

So the risk you have gets diversified,

So I would say there is a moderator risk here.

So of course, if you take a little more risk,

So you can earn a little higher returns as well.

If you want to earn returns of 20-25%.

So you have to invest directly in stocks.

And to invest directly, You have to learn and gain knowledge.

We keep making a lot of videos on how to do stock investment.

So for that, you must subscribe to the channel.

I have also made videos about how to open a Demat account and how to operate it.

So definitely look at them too, you will find its links in the description below

Let us now come back to the topic of ELSS.

First, we will compare ELSS with other tax-saving schemes

such as FD, national saving certificate, PPF and NPS

NPS means National Pension Scheme

This is a very popular scheme.

We talked about ELSS, that the risk is moderate in it because

Here Your Risks Get Diversified Invest in a lot of different stocks.

There is a lot of research and the fund manager is very knowledgeable.

So we would say there is a very moderate risk.

And there is a very minor risk in FD and National Saving Scheme also.

Because capital is protected here.

PPF also has a low risk because there is government backing

The National Pension Scheme has moderate risk.

Because nowadays equity schemes have also come under the National Pension Scheme.

Where your money is invested in the stock market.

I have made multiple detailed videos on NPS so you can watch them.

Now if we talk about the lock-in period,

then ELSS has the shortest lock-in period out of the four schemes.

Here your investment amount gets lock-in within 3 years.

That is, you cannot withdraw money within 3 years.

If we talk about FD and NSC, these tax-saving FDs generally have a lock-in period of 5 years.

and National Saving Certificate, even in the savings schemes of senior citizens

They have a lock-in period of 5 years.

In PPF, this increases to 15 years.

And in NPS you cannot withdraw money before retirement.

So we see here that ELSS stands out among all the tax-saving schemes out there.

Because there is a lock-in period of only 3 years.

Now when it comes to returns, ELSS was not taxable earlier.

Now it has become taxable.

your returns let say you get returns of two lakhs,

After 2 years, 3 years, 4 years or after 5 years.

They will be taxable.

So all the returns above one lakh,

If you are getting returns above one lakh within 1 year

so they are taxable, and a long-term capital gains tax of 10% is levied.

And the one lakh returns are very high.

I think most of the people will not earn 1 lakh returns within 1 year.

So all over you can think that these taxes will not be levied

But yes if you invest more in equities,

If the amount exceeds one lakh, then a long-term capital tax of 10% will be levied on it.

And if we talk about other investments

Your returns are taxable in FD, NSC, Senior Citizen Scheme

Your returns are not taxable in PPF

PPF comes under the category of EEE- Exempt Exempt Exempt.

And the returns under NPS are not taxable.

So if we talk about taxability then PPF and NPS are better options.

Now the question arises: how many returns will we get in actuality?

So in ELSS, you can expect returns of 13 to 14%

And I am telling post-tax returns

Let's say, you get 15% tax and suppose 10% tax is also levied.

Even then you will get returns of 13.5%.

So here we can expect that you will get 13 to 14% post-tax returns in ELSS.

And the Returns in FD and NSC are already taxable.

And these taxes are applied according to your income tax slab.

Suppose you fall in the 30% bracket,

So your returns will also be reduced by 30%

Suppose you are getting 7-8% returns in FD after taxing it

You will get only 5 to 6% returns.

In PPS you get 8% returns, And the advantage here is that there is no tax on it.

So you get the full 8% returns here.

You get 8 to 13% returns in NPS I am saying 8% because

If you invest more in debt, So the returns are reduced

If you invest all money in the equity.

So you can get around 13% returns

See, I have done the comparison in full detail.

You can watch that video

I discussed what investment you can use for any specific goals

So you should remember

Overall I would like to say that ELSS is good enough.

because the risk is moderate, The lock-in period is also the shortest.

Even if returns are taxable, in today's date it is not that high tax.

And post-tax returns are good in comparison to other investments

Now the next question comes whether we should invest in SIP

or should we invest the lump sum money?

Look, this is a very tricky question.

Many investment advisors simply say that

You can blindly invest money in SIP,

All your returns will be averaged out.

But let me explain to you with a graph here I have taken out the Sensex of the last 10 years

Now look in 2008, here I have started from January 2008

Then the market was at 2100- 2200 after that the market kept falling.

Here the market had fallen a lot till 2009's Mid.

The market of 7000-8000 had arrived. So if you were doing SIP,

Let Say you had to withdraw money in June 2009 you had a financial goal

And let say You were investing for the last 3 years

So you took out your money at a very low price

even after average out, you would have to bear a lot of losses due to a fall in the market.

Let say If you invest lump sum money in mid-2009

So here if you withdraw money after a year and a half

So you will earn very good returns,

If we talk on let say in 2010 or the beginning of 2011

Or if we talk about the end of 2010.

Your money would have doubled in a half a year

To see what will be right for you, for this, I have two answers

First, if you want to invest in Lump Sum

So you should have an idea of ​​the market,

Let's assume the market is growing by 25% for the last 3 years.

So we know that Sensex will keep increasing by 25% every year.

So it is not sustainable.

So if you can put in a little time, then investing in lump sum money can be better for you.

But if you do not have an idea of ​​the markets

You don't have time to follow markets,

So you can invest money in SIP, See what is the benefit of SIP

Let say If we talk about 2009 here,2019 is going on as of today

If you keep doing this for 10 years then your graph will be like this

And your overall returns will be the average.

So you will not be bothered by the ups and downs of the market.

But if your horizon is of short term for 3 years or 4 year

So in that you can also get benefits if you invest lump sum amount.

but I will say again if you don't follow markets

if you don't have time so you should invest in SIP

With the averaged out returns, you will gain overall return.

Now the second question comes

how the lock-in period will be calculated in SIP and Lump Sum.

The lump-sum is quite simple,

Let's say your investment amount is 50000.

If you invested on 1st May 2019. So there is a lock-in for 3 years.

So the redemption date will be after 3 years.

You can withdraw money on 1st May 2022.

Let say you invested ₹ 1,00,000 on 15th December 2019.

So its redeem date will be calculated from 15th December 2019.

So you can withdraw this money on 15th December 2022

Now the question arises in SIP.

If we're investing some amount of money every month then what will happen

here every month-wise, remember every month will have a different date

If you are putting ₹10000 on 15th April 2019 So it will mature on 15th April 2022.

The money invested on 15th May will mature on 15th in 2022.

Each month will have a different date.

so what to do in such a case

See there is no problem in investing money you just have to wait

Your investment for the whole year, you can withdraw it after 4 years.

Why withdraw in 3 years only? You don't have to withdraw money every month

So whenever you have made your financial goal, make it at least 5 years or 7 years.

Now the type of Funds, In which type of fund we should invest ?

One is your growth fund, one is your dividend fund.

which one is the right one for investment

You do not get compounding gains in the dividend funds.

What is Dividend

Every month you get some dividend, the dividend you got

So it is not getting invested back,

Interest on interest which is called the compounding effect

So your principal will not increase much, Your principal amount will remain the same

So you don't get much benefit out of it.

In growth funds, you get the compounding effect.

If you invest one lakh, then your one lakh has become 1,15,000 next year

After that in the next year, 115000 was increased by another 15%.

So after that, it became around 1,35,000 So in this way, your amount goes on increasing

And many people say that if you reinvest the dividend then

So that's also a benefit, If you reinvest the dividend, then the same problem will come.

The lock-in period will be calculated from the last investment date

so your lock-in date changes every time.

so I would say you should invest in a growth fund

Because you are taking a little risk then you should invest money in a growth fund only.

Now the next question comes to the people whether we should invest money in

an aggressive fund, save funds or a balanced fund.

Now, what are the saved funds? Save funds are large-cap funds.

Where the risk is slightly less, What are large-cap funds

the top thirty companies of Sensex,

Or the top fifty companies of Nifty Money are invested in those companies.

Because they are such big companies, then their growth is a little less.

So you can consider that as a little save investment

Mid-cap carries moderate risk. Mid-cap is the middle companies.

I have made a video on what is large-cap, mid-cap, small-cap

I have made a detailed video of all these, you can see it.

Exactly in which range is the large-cap,mid-cap, the small-cap falls

small caps are small companies

in which the risk increases slightly

So if you want to play it safe then I would say

In a balanced fund in which all three types of companies are invested,

you can invest your money in it.

Because there the risk becomes low, large caps give you security.

And because of mid and small caps, you get a little better return.

But if you don't want to take the risk at all,

You are new, and you just want to test

So you must try in large-cap funds.

After that, a question comes of investment planning and tax planning.

Should the planning be done at the start of the year,

or should it be done at the end of the year?

End of the year most people do most of the investments from January to March.

If we talk about ELSS or Mutual Funds

So more than 50% of investments are made from January to March.

Which is wrong. What is its reason ?

We also understand this from the graph.

Now let me see the graph of last year itself.

Let's talk about April 2019

Last year would have started from here

Suppose if you had started tax planning from here

You would have benefited from the lower market here.

Let say there must have been a market of 33 to 34 thousand

Today the market is running around 38000

So definitely you would have benefited here within 1 year.

But if you are investing towards the end in the January-February then

See here was the market of 36,000 So here you have got very less benefit

What happens, the overall graph only goes up.

You have the advantage of this average out

If we look at the overall, it is most likely that the markets will go up.

And if you are thinking of investing lump sum from the very beginning

So you will know that the market has fallen further now that I should invest now.

If only January and February are left to invest.

Then you do not have any other option, you have to invest the money at that time only

You will have to invest lump sum money only at that time.

So I think I have covered all the major points here

How you should invest in ELSS

I have tried to answer all the questions that people come across.

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