reaibonk.icu

Usually, we all look for investment opportunities that can help us build an adequate sum of wealth, get regular returns, and/or save taxes. There could be several investment schemes in the market to save your taxes, but ELSS i.e. Equity linked saving schemes is a one – stop solution for all your tax saving and wealth creation needs. Usually 80 % of asset allocation needs to be in equity funds. ELSS SIP is also an easy option for investing where the minimum investment amount is Rs 500.

ELSS funds are also called tax saving schemes as they offer tax exemption of up to Rs. 150,000 from your annual taxable income under Section 80C of the Income Tax Act and comes with a three-year lock-in during which they cannot be redeemed or switched. Among other tax saving instruments, ELSS is the scheme with the shortest lock-in.

Six Key factors To Consider While Choosing ELSS Fund

Portfolio composition

A major portion of ELSS funds are equity funds that invest their major chunk into diversified equity or equity-related instruments. The Fund manager has the flexibility to allocate the stocks as per his calculations, research basis of the market conditions, objective of the fund, and his own risk-taking capability to achieve that objective (i.e. Large Cap / Mid Cap).

You can review what is the portfolio composition of the fund based on market cap and stability of its investment patterns. Prefer to choose the funds that have steady investment pattern and that stay true to its label. Choose quality of companies invested in while assessing the ELSS schemes. Evaluate the stocks concentration in the portfolio and percentage of top five stocks in the portfolio. Thoroughly check all allocation made to large cap / mid cap / small cap companies in the ELSS tax -saving schemes.

Risk Involved and Expected Returns
ELSS is an Equity Linked Scheme and it requires you to identify your risk appetite.

Risk and returns on investments are interlinked. One must ensure to check the risk and returns involved while choosing ELSS funds. Some Mutual Funds could be giving higher returns but risk involved also could be equally high. Therefore, the key to decide your risk appetite while assessing a suitable fund for you. Risk involved can also be calculated from ratios like Sharpe Ratio which is a measure of risk-adjusted return.

Return Expectation of the ELSS Funds
While selecting the ELSS mutual fund, it does not make sense to chase returns. Last one-year’s performer may not be consistent next year. Hence, investor must review the trend of the fund in respect of rate of returns delivered. Also, one should consider the rate of return as well as the consistency with which those returns are delivered. Select the scheme based on your preference with the portfolio style and strategy. Make sure to analyze the records of the fund for a period exceeding 5 years. This is an ideal duration, as the fund goes through multiple cycles of ups and downs in the market. This helps the investor to track the past performance of the particular scheme.

Expense Ratio of ELSS Funds
Investor should choose the fund with low or moderate expense ratio along with the higher rate of returns.

Fund Manager’s performance
Fund House
Examine whether the fund manager is able to deliver consistency of performance across market cycles
Check fund manager’s profile and his/her record not just in this fund but other funds he/she manages
This is an important factor to select the Tax- Saving fund. Investor must consider the asset management company’s investment philosophy, do a deep background check of its financial stability and company policy before investing

In order to understand how to allocate to ELSS funds, compare ELSS to the other equity funds held, so that there is no duplication in style and portfolio composition.

Managing business with QuickBooks accounting is simplified with modules that meets all business needs. QuickBooks hosting is cloud basedaccounting solution for small and medium businesses and enterprises. Small and medium firms can host their business online that is secure and reliable. QuickBooks Hosting servicesoffered to firms that are hosted on cloud and on premise. Online accounting software offers flexibility to keep track on company business sales from anywhere and tracked on phone, tablet or desktop. Nearly all devices are compatible to access QuickBooks application anytime anywhere. QuickBooks hosted solution runs on any device for any user from any location. Therefore anytime,anywhere, fast, easy and secure access enhances business productivity with cloud hosted benefits. Businesses keep track of sales and invoices updated to make corporateoperations functioning and running as per expectation.

QuickBooks Hosting onlinemakes business updated on each move. All account updates are instantly shared on the device which develops higher sales and company growth. Intuit QuickBooks Hosting is best reasonable accounting solution which simplifies businesses.It costs reasonable for packs and modules which company owners can chose to make their company needs met. All manual operations can turn digital with use of software and services. Records are updated and hosted securely on cloud servers. All business operation of accounts, invoicing, tax, VAT are well managed with QuickBooks application hosted on cloud. Business management gets simplified with the help of QuickBooks solution. Intuit QuickBooks accounting solution supports all its customers for technical support services. Customer support team can be contacted 24*7for technical needs.

QuickBooks hosting online is economical accounting services which is low operational cost to small and medium firms.The multi-user access license is purchased and only valid logins can access the system hosted online as the cloud hosted solution is secure. All authorised users have secure access to the web hosted accounting application. Most of the cloud hosting benefits such as multi-user access, security, remote access, maximum up-time, cost-efficiency, add-ons, updates and 24*7 technical support are offered by Intuit as service package.QuickBooks hosting solution on clouddelivers best results for companies. In case of any technical issues on QuickBooks hosting, technical support services help customers.A low-cost affordable QuickBooks Hosting provides all accounting needs for enterprises, also businesses can consider those modules that are relevant and economical. The complete hosting package is also a good option to make accounting needs met.

QuickBooks software can also be customized on demand which means customers can prefermodels that meets business needs to meet the company business requirements.Accounting application QuickBookshosting access is available anytime on any device is one of the best features to make company business running successfully. Customers can track all business activities on the accounts and things related to company operation.Customersget updates on company business, invoicing, taxation and accounting tasks on any device they own. Access anytime offers flexible company operation hence great productivity is achieved by the firms. Tax Preparation, VAT and tax filing is even more convenient with online hosting of QuickBooks accounting solution. All Accountants, small businesses and CPAs can access QuickBooks hosted on cloud which offers tons of benefits.All accounting solution is in one place, organised for managing invoices, tax filing, estimates, expenses, banking, corporate tax, VAT, self-assessment.