Everyone knows that ELSS is a tax saving mutual fund with portfolio mainly focusing on equity. But the another benefit of ELSS is maintaining and growing your money. Equity-based investment is generally termed risky and usually recommended for younger investors. But not many people know equity investment is more about returns then risks. Still unconvinced? Read on..
While many people invest with the idea of retirement in mind and many people actually stop their investments once they retire. This is a huge mistake. While retirement savings are done many years back without the consideration of high inflation of recent years. So the savings that any retiree saved may only last up to few years and you may have to cut back on many necessities to adjust your budget.
To avoid these troubles, it is best to invest in schemes like ELSS to enjoy their financial freedom.
It is well-known that funds like ELSS have maximum equity portfolio allocation and this may seem very risky for many senior citizens.
The important point to remember about equity investment is, after 5-7 years the risks associated with these types of investments tend to average out giving you better returns then any conventional sources of savings.
Also along with tax benefits, the liquidity of ELSS funds are higher.
Considering all these options, ELSS one of the best options to gain your financial freedom after retirement.