Introduction
Equity Linked Savings Scheme (ELSS) offers you the dual advantage of tax-saving and wealth creation in the long run. ELSS funds carry the lowest lock-in period of three years under the various tax-saving products eligible under Section 80C. ELSS offers the convenience of investing through Systematic Investment Plan (SIP) and lumpsum. Moreover, you can start your investment with as low as Rs 500 through SIP.
What is PGIM India ELSS Tax Saver Fund?
PGIM India Long Term Equity Fund is an open-ended Equity Linked Savings Scheme with lock-in of 3 years and offers tax benefit under section 80 C of the Income Tax Act 1961. The fund invests in companies across a wide range of sectors and market capitalization.
What are the benefits of investing in PGIM India ELSS Tax Saver Fund?
- Suitable for investors looking to create wealth.
- Ideal for long term goals such as retirement.
- Possibility of earning income in the lock in period by way of Income Distribution cum Capital
- Withdrawal (IDCW) i.e. Dividend.
- Investors in the highest tax bracket opting for old regime can save Rs 46,800 on investment of Rs. 1.5 lakh.
- Lock-in of 3 years helps investors tide over volatility and reap the benefit of long term investing.
What should be the ideal time horizon of investing in PGIM India ELSS Tax Saver Fund?
Though the fund has a lock-in period of 3 years, investors can remain invested in the fund to benefit from long term compounding growth and meet their long term goals.
FAQs
Should you do SIP or invest lumpsum in PGIM India ELSS Tax Saver Fund?
You can decide to allocate lumpsum or SIP as per your cash flows. It is advisable to start your tax planning at the start of the financial year to avoid any last minute rush. Investing through SIP helps you accumulate more units when markets fall.
How to invest in PGIM India ELSS Tax Saver Fund?
There are several options to invest
- Website: You can invest through https://investors.pgimindiamf.com/auth/login by creating your profile and submitting identity details, and bank account information, and becoming KYC compliant.
- RIA/MFD: You can also invest through a Registered Investment Adviser or Mutual Fund distributor registered with SEBI/AMFI.
- Industry Portal: You can also invest through MF Utility or MF Central portals.
- Do consult your financial advisor before investing to understand if the fund fits into your risk profile.
Can I invest through SIP and lumpsum mode in PGIM India ELSS Tax Saver Fund?
- You can invest lumpsum as well as through SIP mode.
- The minimum application amount under this fund is Rs 500 for a lumpsum transaction. You can invest a minimum of Rs 500 as additional investment.
What frequency/dates are allowed for Systematic Investment Plan (SIP), Systematic Transfer Plan (STP) and Systematic Withdrawal Plan (SWP) transactions in PGIM India ELSS Tax Saver Fund?
- SIP: Any date of the month or quarter, as applicable.
- STP: Daily, Weekly, Monthly and Quarterly.
- SWP: Monthly, Quarterly and Annual, any date.
How is PGIM India ELSS Tax Saver Fund taxed?
- Short Term Capital Gains: 15% on gains if sold before 12 months. (Units are locked in for three years).
- Long Term Capital Gains Tax: Gains of up to 1 lakh (sold after 12 months) are tax free. Gains above 1 lakh are taxed at 10%.
(Applicable under the old tax regime)