Equity-linked savings scheme (ELSS) is an asset class where investors can get equity-like returns with tax saving benefits. However, often people make mistakes while choosing a ELSS. Let us discuss, what are the points to be considered while investing in ELSS.
Start investing early
Generally, investors invest in ELSS funds towards the end of the financial year, when they realise the need for showing proof of investment for tax computation purposes. This is an extremely poor strategy. First, as it is towards the end of the year, you may be in cash-flow tight positions.