ELSS Calculator

The equity-linked savings scheme, known as ELSS, is an open-ended equity mutual fund that provides tax deductions according to Section 80C of the Income Tax Act, 1961. This particular type of mutual fund focuses on equities and is the only category of mutual funds eligible for tax benefits up to Rs. 1,50,000 per year. By investing in ELSS, you can potentially save Rs. 46,800 annually on your taxes.

ELSS portfolios are diversified and include equity-linked securities from companies across various market capitalisations and sectors. Additionally, a portion of the portfolio is allocated to fixed-income securities. Investing in ELSS allows you to enjoy the advantages of exposure to a well-diversified portfolio.

To use an ELSS calculator, follow these steps:

1. Open the ELSS calculator: Access the online ELSS calculator on Angel One.
2. Input investment details: Enter the investment amount you plan to invest in ELSS. This can be a lump sum amount or SIP. Specify the investment duration, which is the period you intend to stay invested in ELSS.
3. Set the expected rate of return: Provide an estimated rate of return that you expect to earn on your ELSS investment. The actual rate can vary based on market conditions and the historical performance of ELSS funds. You can use an average rate of return or refer to past performance data.
4. Determine your tax bracket: Identify your income tax bracket or tax rate. This information is crucial for calculating the tax benefits associated with ELSS investments. The tax bracket will determine the applicable tax savings under Section 80C of the Income Tax Act, 1961.
5. Calculate the results: Click on the calculate or compute button to generate the results. The Angel One ELSS calculator will provide you with an estimate of the investment value at the end of the investment duration. It will also display the tax savings you can expect to achieve through ELSS investments.
6. Analyse the results: Review the calculated investment value and tax savings. Assess whether the projected returns and tax benefits align with your financial goals and expectations. You can also adjust the inputs in the calculator, such as the investment amount or duration, to see how it impacts the results.

It's important to note that an ELSS calculator provides estimates and projections based on the inputs provided. The actual returns and tax savings may vary depending on market conditions and individual circumstances. It is essential to consult with a financial advisor or tax professional for personalised guidance and accurate calculations.

ELSS funds provide taxable capital gains. Due to the 3-year lock-in period, only long-term capital gains can be realised. These gains, up to Rs. 1 lakh per financial year, are exempt from taxes. However, any gains exceeding this limit are subject to a 10% tax rate, without the benefit of indexation. On the other hand, mutual funds with dividends are added to an individual's total income and taxed at their applicable income tax slab rate.

1. Accurate projections: By using the Angel One ELSS calculator, investors can obtain accurate projections of the future value of their investments. It takes into account the investment amount, expected rate of return, and investment duration to provide a realistic estimate of the potential growth.
2. Tax savings estimation: One of the key advantages of ELSS investments is the tax benefits they offer. The calculator helps investors estimate the amount of tax savings they can potentially achieve by investing in ELSS, based on their income tax bracket and investment amount.
3. Planning investment strategy: The Angel One ELSS calculator enables individuals to plan their investment strategy effectively. By inputting different investment amounts and durations, investors can analyze how it affects the projected returns and tax savings. This helps in making informed decisions about the optimal investment amount and duration.
4. Comparing investment options: The ELSS calculator by Angel One can be used to compare different ELSS funds or investment scenarios. By inputting different expected rates of return or investment durations, investors can compare the potential outcomes and select the option that aligns with their goals and risk appetite.
5. Time-saving and convenience: The calculator saves time and effort by providing quick calculations and projections. Investors can easily access it online on Angel One, making it a convenient tool for assessing the potential outcomes of ELSS investments.
6. Financial planning and goal setting: The Angel One ELSS calculator facilitates financial planning by providing insights into the growth potential of ELSS investments. It helps individuals set investment goals, determine the required investment amount, and make adjustments based on their desired future value or tax savings.