SIP is a way to invest a set amount on a monthly or quarterly basis into a mutual fund scheme of your choice.
An ELSS scheme comes with a three-year lock-in period with tax benefits under section 80C of the income tax.
SIP provides ease by automating your investments and instils a disciplined approach to investing.
ELSS schemes yielded an average 25.73% compound annual growth rate over the past three years.
SIP lowers the risk of market volatility and provides ease of investing in ELSS.
Setting aside small sums of money monthly, quarterly, half-yearly, or annually might be feasible for most individuals.
In the case of investing through SIP, every instalment is considered separately to calculate the lock-in period.
Investing in an ELSS scheme should be based on your income flow, risk-taking capacity, and the investment period.
Compiled By Himani Verma