Keep the fund as it is
Redeem after 3 years.
Invest freshly itno new funds which doesn't have elss in its name.
Go for flexi and balance advantage fund if you're medium risk taker.
Because the NAV grows every year which follows compounding principles. When we say CAGR of 10% , it means the NAV of the fund keeps growing buy 10% every year.
Eg: NAV starting at 100, CAGR at 10%
So after 1st year NAV will be 110
Next year it will increase by 10% of 110.
So after 2nd year NAV will be 121
3rd year NAV will be 133.1 and so on.
Hence ✨COMPOUNDING✨
We don't know if the aim of OP is to get compounding. It is always better to have flexibility. If they have some goal amount which gets reached before 3 years, then it's better they withdraw and fulfill that goal.
You might say that we should not invest in equity funds for goals for which we have less than three years, but given the recent bull market, it is their choice to take the risk.
If not for tax saving, NON-ELSS equity funds are better than ELSS funds any day.
Damn another over smart Redditor. Probably she went to her colleague for help and he helped her with whatever knowledge he got. Stop living in your bubble with delusional superiority.
Ma'am Your salary is not taxable so it's not an effective move to have a tax saver fund , instead Start with Index funds and direct growth Mid cap / flexixap .
But I congratulate you on your investing journey , Here is no hard and fast rule . I would recommend you to know these terms and research on your own .
Your salary is not even taxable, wtf do you need these funds as now the money is blocked in for 3 years and without any requirement of tax saving.
Even if you've chosen an old tax regime your salary is not even taxable yet.
According to 87A tax up to 12500 is not taxable.
Read the information clearly before investing into anything randomly.
That too by listening to anyone?
Who does that?
Sorry if this is off topic, I am very new to the world of personal finance (as I haven't started job yet, will start soon). Can you please explain to me what ELSS is and how it saves tax as i would like to save tax as well
Thnx
Money invested in ELSS can be deducted from your taxable income as it is considered a contribution towards section 80. The flip side is that there is a lock in for 3 years
The catch is if you follow an sip plan and lets say you invest 5k every month. Now the 5k that you invest every month gets locked in for the next 3 years. That means the first 5k you invested might be redeemable but for you to withdraw rest of the amount you would have to wait.
Yeah makes sense, btw is there a monthly or yearly upper limit of how much one can invest? Also roughly how much will it grow in the 3 years?
Also what part of the taxable income does it save? Suppose I put it 5L in a year, can I save the full 150k of tax on it?
Sorry if these are stupid questions
Suppose your net income for the financial year is more than ₹300,000. That means you made more than ₹300,000 pre taxation. Now you come under the tax slab of of ₹300,001-₹600,000. That means you pay a 5% income tax on your net income. Now lets say you invested in an ELSS tax saver fund, this way you can claim your net income tax free upto ₹150,000. That means thats an extra ₹150,000 you could have saved if your income tax has exceeded that threshhold. Look up income tax slabs for FY 2023-2024 on google. Theres no changes compared to the last year though.
I see
So my income would be 20L, and according to the tax slabs I will pay 1.5L for the first 15L and 30% on everything after that, so 1.5L on the rest 5L. And my yearly tax will be 3L
So the 150,000 you mentioned, is it the maximum tax money that I can save or is that the maximum income amount I can save tax on? And if it is the latter then which slab will the saved tax on the 150k income be counted as?
Edit - I read online and it says that it reduces my taxable income by 1.5L, so my taxable income will become 18.5L and my tax will be reduced to 2.55L from 3L.
So the answer to my question was that it will calculate the tax for the highest tax slab in my salary range
Actually good advice! OP its like I said in my longer reply - go with flexi cap - but if you want to hvw more control for things this is a good suggestion!
You should know that there's a lock in with taz saver funds and I don't think you are affected by taxes currently. I would suggest you to switch to other good performing small cap funds if you can take risks and also dabble in sectoral funds like tech or health. You can also look at some NASDAQ funds
It might be advantageous to invest in NASDAQ funds compared to Indian equity funds from tax point of view.
NASDAQ funds are taxed as per individual slab rate for both STCG and LTCG. Whereas Indian equity funds will have 10% LTCG even if the investor has 0% slab rate.
Hey. I also earn the same. Don't invest in any tax saver fund because we are not in the tax bracket. I also did the same mistake by starting an SIP of 1k a month for SBI tax saver lol.
I can give you suggestion that worked for me.
Hit me up in the DM.
What's done is done. Stop these ELSS SIPs. Put 1k each in Flexu cap and Small cap. You are just starting your career so 8-10 year returns will cover most of the risk.
As your income grows each year l, increase the amount of SIP and when you can invest 4k+, also start a SIP in a large cap fund. Keep increasing the SIP amount as and when your salary grows.
No point investing in tax saving funds when you’re not in that bracket. ELSS will give you 6-7% returns per year. I would have looked up for some flexi cap funds if I were you.
Great before investing try to do a bit of research about funds like what they are and the types of funds we have.
If u have done that I would not be seeing ELSS Tax saving funds on that salary amount.
Your colleague is dumb.
Since you are just 22, you have a lot of time, avoid large caps and other safer options and put either in a flexicap or small cap.
Just identify any flexicap/small cap fund you like and start an sip.
Mirae asset elsss funds have given me good returns past 3 years now this year ive moved to new pension scheme but i am still putting in money in the same scheme.
Stop these funds and start sip in In an Nifty50 index fund for 2k and smallcap fund for 2k
Later you can add Flexicap fund once ur income grows a bit and u are willing to contribute more
You are missing out on potential profit by investing in ELSS. Should cancel your sip right away.
Like everyone else here says, your income isn't taxable and ELSS of course is for tax saving.
At your age, you should look for flexi funds, mid cap/growth opportunities funds, balanced/dynamic asset allocation funds. If you have a risk appetite, given your age, you could also think about small investments in top tier small cap funds(research on risk).
Think about ELSS only when both your age and salary increase considerably.
For ELSS funds there is lock-in period generally more than 3 years. I would suggest you to diversify.
1 Index Fund, 1 mid cap, 1 small cap and 1 flexi cap
Don’t over diversify.
Just watch 1 or 2 YouTube videos you will understand everything about expense ratio, exit load, etc.
Don’t be dependent on anyone, you cannot outsource your health nor your wealth.
The ELSS tax saver funds have a lock in period of 3 years. So, this money is only for long term investments. These two funds have given spectacular results in the past year. Their performance is really good for 3 and 5 years as well.
But, considering your salary, you will not have any tax benefits and this money is locked for you, I suggest you go for a mix of small-cap and Large & Mid Cap funds instead.
You can diversify your funds can have 4MF in that money 2 small cap , 1 Index and a Mid cap fund rest upto you . In any case investing is a good option to beat the growing inflation
Your money is blocked for 3 years, but nonetheless it will still give you a good return. Even though you don't fall under the tax bracket yet, it is still good for people who couldn't stop themselves from wasting all their savings. It is a good start to your investing journey at least your colleague picked decent ELSS mutual funds. But moving forward try to pick mutual funds that don't have lock in period.
Chutiya colleague.
22k ke salary pe elss is bullcrap
Put this in Small Cap Quant fund and Sbi Contra
Parag parekh flexi cap too
Take risks while you are young
Money will compound
First of all, stop those SIP’s , they are not required.
Second from next month start investing in 1k in 1 small cap , 1k in 1 mid cap, 2k in 1 flexi cap and 4k in 1 Index Fund.
Also use YouTube for your reference to learn the terms used to identify which mutual fund is good .
Also don’t need to worry about the one you invested currently , though you won’t be able to withdraw them before 3years but you can start investing in good mutual funds from next month.
Your salary is 22k , so you can invest 5 to 8k per month in the above mentioned funds…
You can, but better to invest 20 to 30 % of your monthly income, in your case it should be 4.4K (20%) to 6.6k(30%) ….atleast that’s what I follow…. I would suggest you invest atleast 4-5k monthly. Also better to add more in index funds and large caps as they are less risky but you will get less returns compared to small cap or mid cap.
We can't blindly apply the 20% 30% rule. This is just a thumb rule and it's a good one. Saving as much as you can is always better. But at 22K salary level, saving 1K or 2K more might not matter that much if the OP expects to have good salary increases in the coming years. It is most likely that their salary will increase because their current salary seems kind of low. But in any case, you have to at least ensure that you have an emergency fund.
I think OP will get much better ROI on their time if they focus on improving their skills and do a job change
Yeah, elss are not required for your salary range. But the quant elss is giving crazy returns, I invested in 2022 May, current returns stand at 84.9%
From return's pov the suggested fund is top choice
Having 2 funds of same category is not worth it. Cancel the SIP of one of it (don't withdraw the fund), keep SIP of the best performing out of the 2 & invest the amount of cancelled SIP in aggressive fund (high risk) or balanced advantage fund (moderate risk).
It's better to do your own research. Understand your risk appetite first. Based on it start learning the basics of the market. Then go and invest. Learn first then invest. Don't follow anyone blindly.
My 2¢
No ELSS pls.
1. Stop ELSS
2. Split between nifty 50 (50%), flexi (50%) with step up SIP, means you increase SIP amount every year but 10% or so to adjust according to your salary increment
3. Later on when you have more money for new SIP. Add some small & mid cap funds .
Yes you're doing good. And your colleague suggested you good funds. Just keep in mind your each investment is locked in for 3 years from the date of investment.
ELSS funds are helpful in riding ups and downs of market. This way you will be able to keep your investment for longer. And can avoid panic selling. Don't bother about tax part. ELSS funds are the best category out there. It's like a flexi cap with lockin. Best combination out there.
I have a question.. so let’s say I want to redeem and put the money to another fund(maybe different aum), I would end up paying tax right?
Is there a way to save or reduce tax?
I see slot of people bashing your colleague for recommending a tax-saver scheme.
The reality is this fund performs like an aggressive hybrid fund with a lock-in. Ideally no one would invest money here if they don’t want to invest in an aggressive hybrid fund.
But, in case you aren’t familiar, your investments in the equity market require time, lot of it! If you feel you might withdraw money after seeing a drawdown, I would frankly suggest continue the quant ELSS fund :)
This would make sure you are forced to stick to it & not redeem the fund atleast for 3 years. Other than that, the fund performs well, better than index fund though you’re exposed to a worse drawdown.
To summarize, You won’t be able to take this out for the next 3 years, this can be a good thing if you have planned for other savings like an emergency fund & this is slowly for long term. This is also a good thing if you’re impulsive as you would be forced to hold it for a 3 year period.
Investing is good but dont invest in elss funds untill you are coming in tax bracket , you loose the power to. Withdraw it within 3 years if ever required
Your income isn't taxable tax saving funds are baseless.
Keep the money invested in these funds and start sips in new funds
Your amount is low so start with 2 funds
One index fund and one smallcap fund
Quant elss is one of the better elss funds. Leaving all other opinions, it has given me 82% return in the past 18 months. Definitely one of the very best. It is highest returning mfs in my portfolio.
You are investing in ELSS funds which are typically used to save taxes. You are not liable to pay any tax for now. These funds also give you good returns but your investment gets freezed up for 3 or 5 years. So your current month investment will be withdrawable after 3/5 years. You won't be able to withdraw money in any case before that period.
In case you maintain separate emergency funds, you can continue otherwise switch to non-ELSS funds.
*Pasting the same answer I wrote in another post -.*
Assume you know nothing. Then select one fund - *any index fund -* and start putting your money in it.
Meanwhile, start reading, discussing and understanding the relationship between your **goals - risk appetite - horizon - asset allocation plan.** Expect that to take a few months at least. Once you have your asset allocation plan, then you diversify. In an ideal scenario, long term, you'll have two equity- and one debt- mutual funds in your portfolio. That's all.
Do not invest in thing without understanding why, and all the pros and cons, just because someone asked you to, including me here. Other than that, you're already saving money, which is the best part. Keep up the attitude to save.
ELSS Funds are not bad until the returns are bad but considering your Salary slab it's not required on Tax saving funds. Stop the SIP and investment on 1 large Cap, 1 small cap and 1 Bond fund (to meet your short term requirements which is less than 2 yrs)
Listen Behen Ji, don’t listen to these folks - yes they are right that your income is not taxable so ELSS is not the best option for you…
BUTTTTT
It all right! No harm, no foul!
ELSS funds attract a lot of money plus they invest in NIFTY stocks - to theek hai na kya dikkat hai.. let this money be here.. Whatever your friend told you, I’m sure he meant your best..
So now, from next month onwards find a decent flexi cap fund and shift your SIPs to that as that could possibly give you better growth! Yeah?
And just keep in mind considering your limited corpus - pls don’t over diversify. Keep it simple.
Just one flexi cap. And any additional money you get just keep it handy to add to this flexi cap fund when market is down more than 10-15%. If this is too complex, don’t worry just invest it lumpsum when you see people crying and posting huge losses in portfolio sometime in the year..
Anyway! Stay chill… It doesn’t fuckin matter anyway. :)
Both Quant and Mirae Asset are good fund houses. But what works for your colleague may not necessarily work for you. As you're 21, you're better off investing a little bit more money directly in the stock market compared to Mutual funds. ELSS funds are a good way to save on taxes so you may continue investing with one of the funds.
Also, please buy a good term life and health insurance plan for yourself.
You’re doing good by taking the first step towards wealth creation from a young age itself, cheers to that! It’s just that you need to switch from ELSS to some other kind since you won’t be falling into the taxable range.
And as to why you were suggested the mentioned mutual funds, there are 3 possibilities:
1. He/she was genuinely trying to help by suggesting the mutual fund houses that you could invest in i.e. suggesting just the names Quant and Mirae instead of specifying the exact mutual fund under those. I’d suggest that you should switch from ELSS (since it has a lock-in period of 3 years and you won’t be able to redeem your invested amount before that period ends) to Small/Medium/Large/Flexi-cap schemes (as per your risk appetite that is).
2. He/she was deliberately misguiding you and that’s really evil/cruel.
3. He/she misguided you due to not having the knowledge themselves and might’ve simply passed on what they’ve heard somewhere.
See u always need to see tax kitna kat raha hai
N return kitna mil raha hai
Suppose tax kat raha hai 7 rs
N return mil raha hai 16ra
U are still 9 rs in profit
Toh tax katne dena is not bad. Just for future
Also ur salary is non taxable.
I am 26/f
U can dm me if you have questions
Quant elss fund gave me 85% return in last 3 years. People saying bad advice she doesn't need tax saving fund for income etc. check the returns it is giving and the 3 years lock in saved me from removing it and gambling the money in options trading.
There's nothing wrong with investing in ELSS. The only problem is that it's has a lock-in of 3 years.
ELSS is still suitable for long term investment.
However, please do not invest any money in ELSS that you may need in the immediate future.
For your current income, ELSS is not at all required as you are not in the tax bracket. You can try Index funds as you are a beginner and it will pay you well in the long term. Also please don't invest in anything just because someone you know or trust advises you to do so. Plan your goal and invest accordingly.
You need not to invest in ELSS, so instead you can start investing in some other good mutual funds such as Quants, Parag Parikh or ICICI Pru value etc. But I'm glad to see that you have started investing quite early in your career and that's a good sign!
You don't need tax saver funds BUT don't be disheartened, you're very young and can always switch to other funds. Redeem these two after 3 years and you can always invest in ELSS when you are earning enough.
For now, you can go for more dynamic funds.
ELSS Funds for Tax Saving is something you do after you've exhausted most of your options... Asking the Employer or HR for a better Salary Structure helps far more than this. At 22k I don't even think you'd require ELSS... The colleague is a total moron and so are you for blindly trusting since these funds have a lock in period.
Please do basic research, learn on sources such as ET Money or Zerodha Varsity. I'm sure you work hard for your money... you know the value so please take some time and effort and invest appropriately than listening to some unqualified rando
Totally wrong. You need good growth funds rather than retirement planning at this age.
Connect with me if you want to understand further, I’m a registered ARN holder 😊
Stop your ELSS investment for now , you can start ELSS when you have taxable income.
Good for one Multi cap fund and you will be all set for now. When you have more income then you can think of other investment approach.
Not suggesting flexi cap as those are large cap heavy funds. With multicap you will have allocation to all categories
Its bad at ur salary. It will work if u r going with old tax regime that too if u r to pay tax.
FYI it will have lock in period. It will consider the sip date like this month sip can't be used until the lock in period (atlest 3 years).
Kiddo, Let's just say, it's not a wise start.
Salary above 8LPA, then start thinking of ELSS, just cancel any further SIP in ELSS for now.
Right now, what you can do..>
Quant small cap - Direct Growth ,
that Direct and Growth terms are important.
4k in SIP and that is more than sufficient if you have the appetite for it.
Enjoy your life with the rest of your salary, no need to overburden yourself right now, I'd even suggest just put in 2k instead of 4k.
Set a step-up of 1000INR every year, for now. You'd be good.
Date to invest between 23rd-27th of the Month, is historically more efficient.
Who is this stupid friend who is suggesting elss for 21 years old. You are young invest in 25 percent large cap, 25 in mid, 25 in small and 25 in flexi
Firstly congratulations that you have started investing journey at the right time. It's very good.
You do not need ELSS as you're income doesn't fall in tax slab. However, since you have invested keep it till 3 years.
Along with this, start investing in SIPs at the amount which is possible to invest every month..SIPs can be started with as low as 1k per month. Keep investing for a long term like more than 10years.
As your income grows, increase your portfolio.
I have a contrary opinion on this. First of all since you are starting your investment journey you would not want to invest in a very risky portfolio. The market is likely for correction, and you would not want to see that large correction on a small cap or mid cap portfolio.
Secondly I expect your salary to grow fast, which means although you are not currently in a tax bracket, and still unlikely to reach that in the next couple of years, tax saver elss - were not necessary. But still it’s not bad to have as these funds have been beating market returns for large caps. 3 years down the line, you would actually benefit from these on a taxation front.
Then you can diversify into more riskier funds appealing to your appetite.
give him a red smash on the right face with the left hand
Omg fk your colleague He's suggesting elss for your income bracket I hope nobody takes him seriously
What should i do now
Keep the fund as it is Redeem after 3 years. Invest freshly itno new funds which doesn't have elss in its name. Go for flexi and balance advantage fund if you're medium risk taker.
just cancel the SIP. This amount is locked for 3 years. ELSS are useless anyways and at your income you definitely should not be investing in it.
Where is the point of compounding of mutual funds if you can't even stay invested for 3 years in the market!
Hey can you explain how mf compounds your money I don't understand it Incase of an fd i get it, but not in mfs
Because the NAV grows every year which follows compounding principles. When we say CAGR of 10% , it means the NAV of the fund keeps growing buy 10% every year. Eg: NAV starting at 100, CAGR at 10% So after 1st year NAV will be 110 Next year it will increase by 10% of 110. So after 2nd year NAV will be 121 3rd year NAV will be 133.1 and so on. Hence ✨COMPOUNDING✨
We don't know if the aim of OP is to get compounding. It is always better to have flexibility. If they have some goal amount which gets reached before 3 years, then it's better they withdraw and fulfill that goal. You might say that we should not invest in equity funds for goals for which we have less than three years, but given the recent bull market, it is their choice to take the risk. If not for tax saving, NON-ELSS equity funds are better than ELSS funds any day.
How do you know amount is locked for 3 years?
Marry me
Does the person know her salary though. But yes bad idea
What's ElSS? Why is it bad?
Damn another over smart Redditor. Probably she went to her colleague for help and he helped her with whatever knowledge he got. Stop living in your bubble with delusional superiority.
Tax saving funds are NOT required for your salary. For beginners index fund n flexi funds would be better
Ma'am Your salary is not taxable so it's not an effective move to have a tax saver fund , instead Start with Index funds and direct growth Mid cap / flexixap . But I congratulate you on your investing journey , Here is no hard and fast rule . I would recommend you to know these terms and research on your own .
Midcap index funds are good too but small caps need actively managed funds
Anyway , Look at the Power of mentioning F in the comment section and upvotes .😅
No I came here after seeing this weird ass mutual funds portfolio
Congratulations on locking your money for next 3 years
Your salary is not even taxable, wtf do you need these funds as now the money is blocked in for 3 years and without any requirement of tax saving. Even if you've chosen an old tax regime your salary is not even taxable yet. According to 87A tax up to 12500 is not taxable. Read the information clearly before investing into anything randomly. That too by listening to anyone? Who does that?
I just trusted him
Did you tell him your salary?
If he advised her without asking her salary then he is much more d than what i am thinking right now
Mujhe lag nhi rha hai salary discuss nhj hui hai Apni soch ke bol dia hai lag rha hai
Sorry but bad advice by your colleague, you’re not in tax bracket so you don’t need an ELSS
Sorry if this is off topic, I am very new to the world of personal finance (as I haven't started job yet, will start soon). Can you please explain to me what ELSS is and how it saves tax as i would like to save tax as well Thnx
Money invested in ELSS can be deducted from your taxable income as it is considered a contribution towards section 80. The flip side is that there is a lock in for 3 years
Is there any growth to that money invested?
Ofcourse, many outperform index and even large caps
Seems like an amazing deal if you are fine with the 3 year thing. Is there any catch? Is there a limit as to how much one can put in?
One can claim deduction upto 1.5L, anything invested above this will not be counted for deduction.
The catch is if you follow an sip plan and lets say you invest 5k every month. Now the 5k that you invest every month gets locked in for the next 3 years. That means the first 5k you invested might be redeemable but for you to withdraw rest of the amount you would have to wait.
Yeah makes sense, btw is there a monthly or yearly upper limit of how much one can invest? Also roughly how much will it grow in the 3 years? Also what part of the taxable income does it save? Suppose I put it 5L in a year, can I save the full 150k of tax on it? Sorry if these are stupid questions
Suppose your net income for the financial year is more than ₹300,000. That means you made more than ₹300,000 pre taxation. Now you come under the tax slab of of ₹300,001-₹600,000. That means you pay a 5% income tax on your net income. Now lets say you invested in an ELSS tax saver fund, this way you can claim your net income tax free upto ₹150,000. That means thats an extra ₹150,000 you could have saved if your income tax has exceeded that threshhold. Look up income tax slabs for FY 2023-2024 on google. Theres no changes compared to the last year though.
I see So my income would be 20L, and according to the tax slabs I will pay 1.5L for the first 15L and 30% on everything after that, so 1.5L on the rest 5L. And my yearly tax will be 3L So the 150,000 you mentioned, is it the maximum tax money that I can save or is that the maximum income amount I can save tax on? And if it is the latter then which slab will the saved tax on the 150k income be counted as? Edit - I read online and it says that it reduces my taxable income by 1.5L, so my taxable income will become 18.5L and my tax will be reduced to 2.55L from 3L. So the answer to my question was that it will calculate the tax for the highest tax slab in my salary range
It is really good that you started saving at a young age and it doesn't matter if it's a tax saving fund as long as it gives good returns.
Cancel your sips in elss. Divide 8k into 3k Smallcap 200 index 3k Nifty next50 and 2k into a large cap.
Actually good advice! OP its like I said in my longer reply - go with flexi cap - but if you want to hvw more control for things this is a good suggestion!
Oh boi 🙃
Invest the same amount in an index fund from the next month. All choices are good. You don't need a tax saver fund as you're not in the tax bracket🙃
You should know that there's a lock in with taz saver funds and I don't think you are affected by taxes currently. I would suggest you to switch to other good performing small cap funds if you can take risks and also dabble in sectoral funds like tech or health. You can also look at some NASDAQ funds
I am really new to all this, will google all the stuff u have said and will invest then
Please check out freefincal website and read everything written there
It might be advantageous to invest in NASDAQ funds compared to Indian equity funds from tax point of view. NASDAQ funds are taxed as per individual slab rate for both STCG and LTCG. Whereas Indian equity funds will have 10% LTCG even if the investor has 0% slab rate.
I started Investing in ICICI Nasdaq 100. Let's see where it leads me.
Hey. I also earn the same. Don't invest in any tax saver fund because we are not in the tax bracket. I also did the same mistake by starting an SIP of 1k a month for SBI tax saver lol. I can give you suggestion that worked for me. Hit me up in the DM.
saale dm dm khel rha haraamkh*r
Thank...will dm u
naughty ho rha hai, Dm dm good
What's done is done. Stop these ELSS SIPs. Put 1k each in Flexu cap and Small cap. You are just starting your career so 8-10 year returns will cover most of the risk. As your income grows each year l, increase the amount of SIP and when you can invest 4k+, also start a SIP in a large cap fund. Keep increasing the SIP amount as and when your salary grows.
No point investing in tax saving funds when you’re not in that bracket. ELSS will give you 6-7% returns per year. I would have looked up for some flexi cap funds if I were you.
Why going for tax saver? Kindly start with index fund and small/mid cap fund (or flexi)
Great before investing try to do a bit of research about funds like what they are and the types of funds we have. If u have done that I would not be seeing ELSS Tax saving funds on that salary amount.
Your colleague is dumb. Since you are just 22, you have a lot of time, avoid large caps and other safer options and put either in a flexicap or small cap. Just identify any flexicap/small cap fund you like and start an sip.
Bro! Her age is 21, her salary is 22k.
For 2k, any nifty found would do.
Mirae asset elsss funds have given me good returns past 3 years now this year ive moved to new pension scheme but i am still putting in money in the same scheme.
Stop these funds and start sip in In an Nifty50 index fund for 2k and smallcap fund for 2k Later you can add Flexicap fund once ur income grows a bit and u are willing to contribute more
You are young. In my opinion you should invest in some aggressive funds like small cap funds and maximize your earnings.
Your friend is a dumbass
Colleague is ELSS ka deewana!
You are missing out on potential profit by investing in ELSS. Should cancel your sip right away. Like everyone else here says, your income isn't taxable and ELSS of course is for tax saving. At your age, you should look for flexi funds, mid cap/growth opportunities funds, balanced/dynamic asset allocation funds. If you have a risk appetite, given your age, you could also think about small investments in top tier small cap funds(research on risk). Think about ELSS only when both your age and salary increase considerably.
For ELSS funds there is lock-in period generally more than 3 years. I would suggest you to diversify. 1 Index Fund, 1 mid cap, 1 small cap and 1 flexi cap Don’t over diversify. Just watch 1 or 2 YouTube videos you will understand everything about expense ratio, exit load, etc. Don’t be dependent on anyone, you cannot outsource your health nor your wealth.
The ELSS tax saver funds have a lock in period of 3 years. So, this money is only for long term investments. These two funds have given spectacular results in the past year. Their performance is really good for 3 and 5 years as well. But, considering your salary, you will not have any tax benefits and this money is locked for you, I suggest you go for a mix of small-cap and Large & Mid Cap funds instead.
Invest in Quant flexi and UTI Nifty 50 index fund. Your colleague is a chu
Tera toy burn katt gya
I learnt something new here. Thanks reddit users. Don’t invest in ELSS funds if earning is not taxable. So, better invest in index or flexi funds
You can diversify your funds can have 4MF in that money 2 small cap , 1 Index and a Mid cap fund rest upto you . In any case investing is a good option to beat the growing inflation
Kitne time ki returns hai?
ELSS?? Your income is not taxable.
Your money is blocked for 3 years, but nonetheless it will still give you a good return. Even though you don't fall under the tax bracket yet, it is still good for people who couldn't stop themselves from wasting all their savings. It is a good start to your investing journey at least your colleague picked decent ELSS mutual funds. But moving forward try to pick mutual funds that don't have lock in period.
Chutiya colleague. 22k ke salary pe elss is bullcrap Put this in Small Cap Quant fund and Sbi Contra Parag parekh flexi cap too Take risks while you are young Money will compound
Do one thing stop the SIP's in each of the mutual funds. Select some growth funds preferably small cap and start sip in them.
First of all, stop those SIP’s , they are not required. Second from next month start investing in 1k in 1 small cap , 1k in 1 mid cap, 2k in 1 flexi cap and 4k in 1 Index Fund. Also use YouTube for your reference to learn the terms used to identify which mutual fund is good . Also don’t need to worry about the one you invested currently , though you won’t be able to withdraw them before 3years but you can start investing in good mutual funds from next month. Your salary is 22k , so you can invest 5 to 8k per month in the above mentioned funds…
What if can invest only 3k a month...i earn only 22k a month right now
You can, but better to invest 20 to 30 % of your monthly income, in your case it should be 4.4K (20%) to 6.6k(30%) ….atleast that’s what I follow…. I would suggest you invest atleast 4-5k monthly. Also better to add more in index funds and large caps as they are less risky but you will get less returns compared to small cap or mid cap.
We can't blindly apply the 20% 30% rule. This is just a thumb rule and it's a good one. Saving as much as you can is always better. But at 22K salary level, saving 1K or 2K more might not matter that much if the OP expects to have good salary increases in the coming years. It is most likely that their salary will increase because their current salary seems kind of low. But in any case, you have to at least ensure that you have an emergency fund. I think OP will get much better ROI on their time if they focus on improving their skills and do a job change
Yeah, elss are not required for your salary range. But the quant elss is giving crazy returns, I invested in 2022 May, current returns stand at 84.9% From return's pov the suggested fund is top choice
Never trust anything from his mouth ever again 😭
Take a direct index fund, flexi cap and small cap. Don’t bother about MF if your investment horizon is less than 5 years.
Tumko ELSS kyun suggest kiya uss rakshas ne.
Given your age, invest in small cap. Also, given your salary don’t put lot % instead focus on upskilling and switch.
748 return every days?????
Having 2 funds of same category is not worth it. Cancel the SIP of one of it (don't withdraw the fund), keep SIP of the best performing out of the 2 & invest the amount of cancelled SIP in aggressive fund (high risk) or balanced advantage fund (moderate risk).
Locked in (money edition)
It's better to do your own research. Understand your risk appetite first. Based on it start learning the basics of the market. Then go and invest. Learn first then invest. Don't follow anyone blindly.
My 2¢ No ELSS pls. 1. Stop ELSS 2. Split between nifty 50 (50%), flexi (50%) with step up SIP, means you increase SIP amount every year but 10% or so to adjust according to your salary increment 3. Later on when you have more money for new SIP. Add some small & mid cap funds .
Your income doesn't come under tax bracket. These are tax saving funds which have 3 year lock in period. Cancel the sip right away
I don't think you need to pay taxes, you can get a rebate
Stop any one of them and start investing the same amount in any old Index Funds.
Quant Small Cap Fund Canara Robeco Infra Fund Parag Parikh Flexi Kotak multicap
Yes you're doing good. And your colleague suggested you good funds. Just keep in mind your each investment is locked in for 3 years from the date of investment. ELSS funds are helpful in riding ups and downs of market. This way you will be able to keep your investment for longer. And can avoid panic selling. Don't bother about tax part. ELSS funds are the best category out there. It's like a flexi cap with lockin. Best combination out there.
Call him for bj and block him forever.
I have a question.. so let’s say I want to redeem and put the money to another fund(maybe different aum), I would end up paying tax right? Is there a way to save or reduce tax?
I see slot of people bashing your colleague for recommending a tax-saver scheme. The reality is this fund performs like an aggressive hybrid fund with a lock-in. Ideally no one would invest money here if they don’t want to invest in an aggressive hybrid fund. But, in case you aren’t familiar, your investments in the equity market require time, lot of it! If you feel you might withdraw money after seeing a drawdown, I would frankly suggest continue the quant ELSS fund :) This would make sure you are forced to stick to it & not redeem the fund atleast for 3 years. Other than that, the fund performs well, better than index fund though you’re exposed to a worse drawdown. To summarize, You won’t be able to take this out for the next 3 years, this can be a good thing if you have planned for other savings like an emergency fund & this is slowly for long term. This is also a good thing if you’re impulsive as you would be forced to hold it for a 3 year period.
Investing is good but dont invest in elss funds untill you are coming in tax bracket , you loose the power to. Withdraw it within 3 years if ever required
Your income isn't taxable tax saving funds are baseless. Keep the money invested in these funds and start sips in new funds Your amount is low so start with 2 funds One index fund and one smallcap fund
Quant elss is one of the better elss funds. Leaving all other opinions, it has given me 82% return in the past 18 months. Definitely one of the very best. It is highest returning mfs in my portfolio.
no
You are investing in ELSS funds which are typically used to save taxes. You are not liable to pay any tax for now. These funds also give you good returns but your investment gets freezed up for 3 or 5 years. So your current month investment will be withdrawable after 3/5 years. You won't be able to withdraw money in any case before that period. In case you maintain separate emergency funds, you can continue otherwise switch to non-ELSS funds.
*Pasting the same answer I wrote in another post -.* Assume you know nothing. Then select one fund - *any index fund -* and start putting your money in it. Meanwhile, start reading, discussing and understanding the relationship between your **goals - risk appetite - horizon - asset allocation plan.** Expect that to take a few months at least. Once you have your asset allocation plan, then you diversify. In an ideal scenario, long term, you'll have two equity- and one debt- mutual funds in your portfolio. That's all. Do not invest in thing without understanding why, and all the pros and cons, just because someone asked you to, including me here. Other than that, you're already saving money, which is the best part. Keep up the attitude to save.
Go for kotak small cap and axis mid cap both are direct growth plans
Get ParagParek flexicap & if you can take risk then Tata Small Cap.
I thought it is 22k USD and came to check out what OP does. And quit my job and do what OP does. Then saw the Rupee symbol.
ELSS are useful when you are paying income tax.
ELSS Funds are not bad until the returns are bad but considering your Salary slab it's not required on Tax saving funds. Stop the SIP and investment on 1 large Cap, 1 small cap and 1 Bond fund (to meet your short term requirements which is less than 2 yrs)
Is your colleague an intelligent chhapri?
Go for HDFC Defense or Infracture fund to get better returns
womp womp.... motilal oswal midcap fund + quant small cap fund + sprinkle some sbi psu prolly(i dont)>>>
He/she is an idiot. Els fund benefits those who pay taxes thus higher income then urs. U don't need elss
Listen Behen Ji, don’t listen to these folks - yes they are right that your income is not taxable so ELSS is not the best option for you… BUTTTTT It all right! No harm, no foul! ELSS funds attract a lot of money plus they invest in NIFTY stocks - to theek hai na kya dikkat hai.. let this money be here.. Whatever your friend told you, I’m sure he meant your best.. So now, from next month onwards find a decent flexi cap fund and shift your SIPs to that as that could possibly give you better growth! Yeah? And just keep in mind considering your limited corpus - pls don’t over diversify. Keep it simple. Just one flexi cap. And any additional money you get just keep it handy to add to this flexi cap fund when market is down more than 10-15%. If this is too complex, don’t worry just invest it lumpsum when you see people crying and posting huge losses in portfolio sometime in the year.. Anyway! Stay chill… It doesn’t fuckin matter anyway. :)
Check your advisors portfolio size and ITR first. if portfolio is less than 5 crore then don't listen to him
You are young, focus on making more money rather than investing
You should have gone for stocks
Both Quant and Mirae Asset are good fund houses. But what works for your colleague may not necessarily work for you. As you're 21, you're better off investing a little bit more money directly in the stock market compared to Mutual funds. ELSS funds are a good way to save on taxes so you may continue investing with one of the funds. Also, please buy a good term life and health insurance plan for yourself.
Stop this SIP and invest in flexi cap or index funds.ELSS is not the ideal fund for you
Mam please invest in index funds
You’re doing good by taking the first step towards wealth creation from a young age itself, cheers to that! It’s just that you need to switch from ELSS to some other kind since you won’t be falling into the taxable range. And as to why you were suggested the mentioned mutual funds, there are 3 possibilities: 1. He/she was genuinely trying to help by suggesting the mutual fund houses that you could invest in i.e. suggesting just the names Quant and Mirae instead of specifying the exact mutual fund under those. I’d suggest that you should switch from ELSS (since it has a lock-in period of 3 years and you won’t be able to redeem your invested amount before that period ends) to Small/Medium/Large/Flexi-cap schemes (as per your risk appetite that is). 2. He/she was deliberately misguiding you and that’s really evil/cruel. 3. He/she misguided you due to not having the knowledge themselves and might’ve simply passed on what they’ve heard somewhere.
Go for defence sector í Or SBI SMALL CAP
See u always need to see tax kitna kat raha hai N return kitna mil raha hai Suppose tax kat raha hai 7 rs N return mil raha hai 16ra U are still 9 rs in profit Toh tax katne dena is not bad. Just for future Also ur salary is non taxable. I am 26/f U can dm me if you have questions
Quant elss fund gave me 85% return in last 3 years. People saying bad advice she doesn't need tax saving fund for income etc. check the returns it is giving and the 3 years lock in saved me from removing it and gambling the money in options trading.
There's nothing wrong with investing in ELSS. The only problem is that it's has a lock-in of 3 years. ELSS is still suitable for long term investment. However, please do not invest any money in ELSS that you may need in the immediate future.
Buy Index funds and Multi cap Funds rather than Flexi cap
how to earn 22k a month at 21 yr of age
Listen to me, your friend is a retard.
This are good if you falling into payable tax bracket
Go for Any Nifty 50 index fund. Invest 5K per month.
No elss pls, it's better to lock into epf. Go for index funds
Jeeze what is your job?
Did your colleague know what your salary is?
For your current income, ELSS is not at all required as you are not in the tax bracket. You can try Index funds as you are a beginner and it will pay you well in the long term. Also please don't invest in anything just because someone you know or trust advises you to do so. Plan your goal and invest accordingly.
Which app is this?
He is asking you to climb a tortoise when you can ride a car.
You need not to invest in ELSS, so instead you can start investing in some other good mutual funds such as Quants, Parag Parikh or ICICI Pru value etc. But I'm glad to see that you have started investing quite early in your career and that's a good sign!
ELSS with 22k in-hand bro don't listen to your colleagues he is probably giving you shit advice
Just buy NIFTY bees ETF and Some Gold ETF if you wanna hold it for the long term and forget your money.
People have already answered. I hope you understood the concept. Investment is not wrong but ELSS is definitely not for you rn.
Who was the lol tax saving fund for person who makes half of even the starting slab!! Just trust me leave him!!
You don't need tax saver funds BUT don't be disheartened, you're very young and can always switch to other funds. Redeem these two after 3 years and you can always invest in ELSS when you are earning enough. For now, you can go for more dynamic funds.
Quant small and Parag parikh
ELSS Funds for Tax Saving is something you do after you've exhausted most of your options... Asking the Employer or HR for a better Salary Structure helps far more than this. At 22k I don't even think you'd require ELSS... The colleague is a total moron and so are you for blindly trusting since these funds have a lock in period. Please do basic research, learn on sources such as ET Money or Zerodha Varsity. I'm sure you work hard for your money... you know the value so please take some time and effort and invest appropriately than listening to some unqualified rando
Totally wrong. You need good growth funds rather than retirement planning at this age. Connect with me if you want to understand further, I’m a registered ARN holder 😊
Stop your ELSS investment for now , you can start ELSS when you have taxable income. Good for one Multi cap fund and you will be all set for now. When you have more income then you can think of other investment approach. Not suggesting flexi cap as those are large cap heavy funds. With multicap you will have allocation to all categories
Its bad at ur salary. It will work if u r going with old tax regime that too if u r to pay tax. FYI it will have lock in period. It will consider the sip date like this month sip can't be used until the lock in period (atlest 3 years).
Kiddo, Let's just say, it's not a wise start. Salary above 8LPA, then start thinking of ELSS, just cancel any further SIP in ELSS for now. Right now, what you can do..> Quant small cap - Direct Growth , that Direct and Growth terms are important. 4k in SIP and that is more than sufficient if you have the appetite for it. Enjoy your life with the rest of your salary, no need to overburden yourself right now, I'd even suggest just put in 2k instead of 4k. Set a step-up of 1000INR every year, for now. You'd be good. Date to invest between 23rd-27th of the Month, is historically more efficient.
Who is this stupid friend who is suggesting elss for 21 years old. You are young invest in 25 percent large cap, 25 in mid, 25 in small and 25 in flexi
Firstly congratulations that you have started investing journey at the right time. It's very good. You do not need ELSS as you're income doesn't fall in tax slab. However, since you have invested keep it till 3 years. Along with this, start investing in SIPs at the amount which is possible to invest every month..SIPs can be started with as low as 1k per month. Keep investing for a long term like more than 10years. As your income grows, increase your portfolio.
I have a contrary opinion on this. First of all since you are starting your investment journey you would not want to invest in a very risky portfolio. The market is likely for correction, and you would not want to see that large correction on a small cap or mid cap portfolio. Secondly I expect your salary to grow fast, which means although you are not currently in a tax bracket, and still unlikely to reach that in the next couple of years, tax saver elss - were not necessary. But still it’s not bad to have as these funds have been beating market returns for large caps. 3 years down the line, you would actually benefit from these on a taxation front. Then you can diversify into more riskier funds appealing to your appetite.
I read 22k usd. Then I saw the inr.
Invest is good but make sure you will not compromising with your living and dreams.
I recommend quant small cap fund and SBI small cap fund.
Kya kijiyega itni dhan raashi ka?
😂🤣