Its important to know Elss meaning to take decision to do the right investments. Investment as a part of savings is very important and one of the best ways to do is invest in anEquity-linked savings scheme also known as ELSS. These are open ended equity schemes offered by mutual funds in India. ELSS can be invested using both lump sum investments or using the SIP (systematic investment plans) method. These investments are widely popular as the give us a tax benefit under the section 80c of the income tax act.
About Sukanya Samriddhi
One of the best elss funds scheme is the SukanyaSamriddhi Yojana is a small savings deposit started by the Prime Minister of India Mr. Narendra Modi on 22 January 2015 under the ‘BetiBachao, BetiPadhao’ campaign. It is meant exclusively for the girl child to meet the education and marriage expenses of a girl child.
READ MORE ARTICLES :
- Social Media Tips For Small Businesses
- Car finance firm raises €30m through debt sale
- Ways To Look For Money In the New Year
- How To Fix Your Credit After A Bad Decision
- Schools don’t prepare children for life. Here’s the education they really need
Opening and eligibility
In the SSY, a parent/ a legal guardian of a girl child can open the account after the birth of the child till she comes to 10 years of age. A minimum of 1000 rupees can be deposited to the account and to maintain the account a minimum deposit of rupees 1000 to a maximum deposit of rupees 1.5 Lakh is to be done during the year. The current rate of interest given by the scheme is 8.1 % and also provides tax benefits. The account can be opened in any post office or authorised branches of commercial banks. The girl’s birth certificate, the address proof of the parents or guardians and their identity proof are the only requirements. After the account is opened the tenure is for 15 years. It is also possible to take out 50% of the balance in the account after the girl turns 18 for educational purposes.
The SSY my account is also Transferable to another bank or post office just with a small payment of rupees hundred.
The interest rate is managed and regulated by the government every year and is compounded annually until it finishes 15 years.
But, it only is restricted to an Indian girl child of 0-10 years of age. But investing in SSY not only gives financial benefits but also contributes to the development in the female population of the country.
Public provident fund
Other popular ELSS schemes arethe public provident fund launched by the National Savings Institute of the Ministry of Finance in 1968. Full guarantee of the scheme is provided by the Central government. All citizens of India are eligible for this scheme and are promised tax free returns.The normal duration of the scheme is 15 years. In case of a death nominations can be made for the returns. Tax benefit of upto 1.5 lakhs is given.The accounts can be opened even in the names of minors. The interest of 7.6% is paid per annum.
Such account and funds are a great way of saving while getting interest on it and more investments should be encouraged.