alexa

Search in Indianmoney's WealthPedia

Home Articles Advantages and Disadvantages of ELSS

Advantages and Disadvantages of ELSS

IndianMoney.com Research Team | Posted On Wednesday, April 08,2009, 12:15 PM

5.0 / 5 based on 1 User Reviews

Advantages and Disadvantages of ELSS

 

 

Advantages of ELSS over NSC and PPF

  • Main advantage of ELSS is its short lock-in period. Maturity period of NSC is 6 years and PPF is 15 years.
  • Since it is an equity linked scheme earning potential is very high.
  • Investor can opt for dividend option and get some gains during the lock-in period
  • Investor can opt for Systematic Investment Plan
  • Some ELSS schemes also offer personal accident death cover insurance
  • Provides 30 to 40% returns compared to 8% in NSC and PPF

Disadvantages of ELSS

  • Risk factor is high compared to NSC and PPF
  • Premature withdrawal is not allowed but it is allowed in other instruments in some specific conditions

What is your Credit Score? Get FREE Credit Score in 1 Minute!

Get Start Now!
CIBIL Meter
Get It now!
Attention!

This is to inform that Suvision Holdings Pvt Ltd ("IndianMoney.com") do not charge any fees/security deposit/advances towards outsourcing any of its activities. All stake holders are cautioned against any such fraud.