How to Invest in ELSS Funds?

In this article we cover

• 1) What are direct ELSS plans?

• 2) What are regular ELSS plans?

• 3) Which is the best ELSS plan for investors?

• 4) How to invest in ELSS mutual funds through offline mode?

• 5) How to invest in ELSS mutual funds through online mode?

• 6) Which is the best mode for ELSS Fund investors?

Due to the efficiency of ELSS mutual funds offer, it certainly has gained a lot of importance in the markets and investors are realising its potential and are investing in it. There are several ways of investing in ELSS mutual funds and here we shall learn about all the different aspects of investing in ELSS mutual funds in India.

Direct Plans vs Regular Plans

You can invest in ELSS mutual funds through either - direct plans or regular plans.

1. What are Direct ELSS Plans?
2. What are Regular ELSS Plans?

What are direct ELSS plans?

• Direct plans are directly offered by the AMC (Asset Management Company) or the fund house.

• There is no involvement of the middleman or a third party like brokers, distributors, etc.

• Returns are higher as the expense ratio and management cost is reduced.

• The cost is reduced due to the fact that there is no third party involvement to manage your investment.

What are regular ELSS plans?

• Regular plans are brought through an intermediary or a third party entity.

• This third party entity can be an advisor, broker or a distributor.

• They help in achieving our financial goals financial goals
  Financial goals are monetary targets that everyone wants to achieve with their hard-earned money. As we grow up our financial needs keep changing. For example, retirement planning may not be a priority in your 20s.Read More with their sound knowledge and a vast experience in the field of finance.

• They construct our portfolio by assessing our financial goals, investment period and risk appetite.

• For these superlative services offered by them they charge a certain indirect fee to investors.

• These fees are not charged by fund houses from you directly but are adjusted against the NAV.

• Mutual funds with a regular plan have ‘Regular’ mentioned in their names.

Which is the best ELSS plan for investors?

• Planning to fulfil a financial goal comes with meticulous research and calculating every financial aspect to correctly evaluate if the fund you want to invest in is Sahi or not.

• All this precise evaluation is impossible at an investors’ level.

• Hence regular plans are always preferred over direct plans since the third party intermediaries with their accurate research recommend you the right fund for achieving your goals.

Investing in ELSS funds through Online mode vs offline mode

In both the plans (regular and direct) you can invest via two mediums - online mode & offline mode.

1. How to Invest in ELSS Mutual Funds through offline mode?
2. How to Invest in ELSS Mutual Funds through online mode?

How to invest in ELSS mutual funds through offline mode?

To invest through offline mode, investors need to fill in the application form and then visit the nearest Cams/Karvy outlet and submit all necessary forms and documents to initiate purchase and redemptions.

How to invest in ELSS mutual funds through online mode?

Keeping with the digitally-driven times, various apps and websites facilitate online transactions in mutual funds. This is the most suitable option for investors as they can transact with just a few clicks.

Which is the best mode for ELSS Fund investors?

Online mode facilitates the use of technology by investing in just one click. It saves you from the hassles involved in paperwork and managing various intermediaries.

Moreover, online mode is easy to understand for investors and is accessible at any point of time. Hence, online mode is preferred over offline mode of investment.

Open a free mutual fund investment account with India’s best mutual fund distribution platform & get started with your investment in ELSS mutual funds today.