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Equity Linked Savings Schemes (ELSS) are one of the most popular investment options among taxpayers in India. Offering the dual benefits of tax savings and wealth creation, ELSS has become a go-to option for investors looking to maximize returns while reducing their tax liability.

In this blog, we will explore what ELSS is, how it works, its benefits, and why it stands out among other tax-saving instruments under Section 80C of the Income Tax Act.

ELSS (Equity Linked Savings Schemes) for Tax Savings

admin | October 31, 2024

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What is Alpha in Mutual Funds ? Higher or Lower Alpha is good ?

In mutual funds, Alpha measures the ability of a fund manager or investment strategy to beat the market. It indicates the excess return a portfolio generates over its benchmark. A positive alpha means the fund has outperformed its benchmark, while a negative alpha means it has underperformed.

How Alpha Works

Calculation: Alpha is calculated by comparing the actual return of the fund to the expected return, which is typically based on the market’s performance and adjusted for risk.
Interpretation:
- Positive Alpha: Indicates that the fund has outperformed the market or benchmark. For instance, an alpha of +1 means the fund beat the market by 1%.
- Negative Alpha: Indicates underperformance. An alpha of -1 means the fund fell short of the market by 1%.

Category: Mutual Funds | Tags: InvestorEducation, Mutual Funds

admin | August 26, 2024

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Top 50 Mutual Fund Abbreviations ( Full form & Explanation)

SIP – Systematic Investment Plan
A systematic investment plan is an investment vehicle offered by many mutual funds to investors, allowing them to invest small amounts periodically instead of lump sums.

NAV – Net Asset Value
The Net Asset Value represents the per-unit market value of all the assets of the mutual fund.

AUM – Assets Under Management
Assets Under Management refers to the total market value of the assets that a mutual fund manages on behalf of its investors.

ELSS – Equity Linked Savings Scheme
An Equity Linked Savings Scheme is a type of equity mutual fund that offers tax benefits under Section 80C of the Income Tax Act.