Mutual Fund Investment: Don't Confuse ELSS With SIP, Here's Why

Many investors looking to invest in mutual funds are quick to take the ELSS or ELSS via SIP route. Reason: ease of use and, most importantly, tax benefit. Investors often confuse SIP with ELSS. While ELSS or Equity-Linked Saving Scheme is a type of mutual fund that is eligible for tax exemption under Section 80C of the Income Tax (I-T) Act, SIP or Systematic Investment Plan is only a way of investing in a mutual fund. Simply put, the option of SIP enables an investor to schedule parking of a fixed amount of money in an instrument on regular intervals. For example, Rs 1,000 every month. But how should you select a mutual fund, or invest in it? What are the factors you should keep in mind while investing a mutual fund? NDTV.com here gives you a lowdown on everything you should know about mutual funds:

Many investors looking to invest in mutual funds are quick to take the ELSS or ELSS via SIP route. Reason: ease of use and, most importantly, tax benefit. Investors often confuse SIP with ELSS. While ELSS or Equity-Linked Saving Scheme is a type of mutual fund that is eligible for tax exemption under Section 80C of the Income Tax (I-T) Act, SIP or Systematic Investment Plan is only a way of investing in a mutual fund. Simply put, the option of SIP enables an investor to schedule parking of a fixed amount of money in an instrument on regular intervals. For example, Rs 1,000 every month. But how should you select a mutual fund, or invest in it? What are the factors you should keep in mind while investing a mutual fund? NDTV.com here gives you a lowdown on everything you should know about mutual funds:

How to select a mutual fund