Gold Mutual Fund Vs ELSS; Best Way to Invest Money and Get Good Returns in India for Long Term Investment | Investing in ELSS and Gold Mutual Fund can give you excellent returns, know where to invest

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  • Gold Mutual Fund Vs ELSS; Best Way to Invest Money and Get Good Returns in India for Long Term Investment

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New Delhi8 minutes ago

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These days if you are planning to invest your money somewhere in such a place. If you can get better returns from here, then you can invest in equity linked saving scheme ie ELSS or Gold Mutual Fund. Both these options are considered good for long term investment. We are telling you about these two schemes so that you can invest in the right place according to your own.

ELSS benefits in tax exemption

  • 3 year lock-in: There is a lock-in period of 3 years in ELSS, that is, the money you invest in it can be withdrawn only after 3 years. This is a very good feature of this scheme. Its lock-in period is much lower as compared to other schemes.
  • Can start investing from Rs 500: Investments can be started in ELSS through a Systematic Investment Plan (SIP or SIP) of Rs 500. There is no maximum limit. Investors get two types of options in these funds. The first is growth and the second is dividend pay out. In the growth option, money remains in the scheme continuously.
  • There are two ways you can take advantage: In dividend options, companies continue to share dividends in the form of dividends from time to time. Dividends can be availed once a year in schemes with dividend option. However, some schemes have given dividend more than once a year.
  • Tax exemption under section 80C: In a financial year, you can avail tax exemption under Section 80C of Income Tax Act on investments up to Rs 1.5 lakh. Apart from this, the return on investment in ELSS and the amount of redemption (selling the investment unit) is also completely tax free.
  • No tax up to 1 lakh rupees: Long-term capital gains (LTCG) up to Rs 1 lakh a year from mutual funds are exempt from income tax. That is, you do not have to pay any tax up to 1 lakh rupees. Taxes at the rate of 10% have to be paid for profits exceeding this limit.

Can start with less money in gold mutual funds

  • Investment in Gold ETFs only:
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    Gold mutual funds are a type of gold ETF. These are schemes that primarily invest in gold ETFs. Gold mutual funds do not invest directly in physical gold, but take the same position indirectly. Gold mutual funds are open-ended investment products that invest in gold exchange traded funds (Gold ETFs) and their net asset value (NAV) is tied to the performance of ETFs.
  • Can start investing from Rs 500: You can start investing in gold mutual funds with 500 through monthly SIP. A demat account is not required to invest in it. You can start investing in it through any mutual fund house.
  • 20% tax will be paid on long term gain: An investment of more than 3 years in a gold mutual fund is considered long-term and its profit is called long-term capital gains (LTCG). Gold is taxed at a rate of 20% with indexation benefit (plus surcharge, if any and cess) on LTCG, while short-term capital gains (STCG) are taxed at the slab rate applicable to the investor.
  • 1 year exit load: Gold mutual funds may have an exit load which is usually up to 1 year. Mutual fund houses charge an exit load when you want to recover the profits of your investment before a certain period. The exit load is levied to prevent investors from going out. Different mutual funds have different time to apply exit load. The exit load is a small part of your NAV, so it is cut off when you go out.

Who gave so much return (5 Best ELSS Vs 5 Best Gold Mutual Funds In the same way, there are many of them.)

Return in 1 year

ELSS Return (%) Gold mutual fund Return (%)
Quant Tax Saver Fund 56.4 Kotak Gold Fund 12.4
Mirae Asset Tax Saver 31.8 Axis Gold Fund 10.3
BOI AXA Tax Advantage Fund 29.6 SBI Gold Fund 11.9
Canara Robeco Equity Tax Saver 29.1 ICICI Prudential Regular Gold Saving Fund 12.1
Axis Long Term Equity 18.9 IDBI Gold Fund 12.8

Returns in 5 years

ELSS Return (%) Gold mutual fund Return (%)
Quant Tax Saver Fund 22.8 Kotak Gold Fund 9.5
Mirae Asset Tax Saver 24.3 Axis Gold Fund 8.1
BOI AXA Tax Advantage Fund 20.1 SBI Gold Fund 9.1
Canara Robeco Equity Tax Saver 19.8 ICICI Prudential Regular Gold Saving Fund 9.0
Axis Long Term Equity 18.1 IDBI Gold Fund 7.3

Source: Fincashdotcom and value research

Disclaimer: Investments in mutual funds are subject to risk. So get the opinion of experts before investing.

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