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You must have heard about ELSS Fund but if you have not heard and you want to invest in it, then this blog can be helpful for you because in this blog we have provided all the information related to ELSS Fund so that you can be clear that you should invest in it or not.

What is ELSS FULL FORM

The full form of ELSS is :

EQUITY LINKED SAVING SCHEME

Meaning of ELSS Fund

ELSS stands for Equity Linked Savings Scheme. ELSS Fund is similar to an ordinary equity mutual fund scheme.

The only difference is that ELSS has a lock-in of 3 years. This means that you cannot withdraw your investment before 3 years.

Also, you get a tax benefit of Rs 1.5 lakh under Section 80C of Income Tax every financial year for investing in ELSS Fund.

Who should invest in ELSS Fund

Any HUF or individual can invest in ELSS. It is more beneficial for those who know about it. Can take the risk associated with it and stay in the investment for a long time.

Younger age investors can invest for a long time in ELSS funds. You can be happy to see your fund grow compounded, and take advantage of its unpredictable returns.

ELSS Fund Lock-in Period

ELSS funds have the shortest lock-in period among all types of savings schemes covered under Section 80C of Income Tax.

ELSS mature in the shortest period i.e. 3 years. The investor can withdraw his money anytime after that.

If you invest in ELSS through SIP, then each installment of the SIP is considered as a new investment.

Many investors have a perception that ELSS funds have a lock-in of 3 years from the date of first investment; but it’s not like that.

Every SIP installment is a new investment.

for example-

  • If you invest in ELSS Fund on 15th February 2021 aditya birla tax relief 96 fund If I buy a unit through SIP, then that unit will be locked for the next 3 years i.e. till 15th February 2024.
  • Similarly, the unit purchased next month i.e. on 15th March 2021 will be locked till 15th March 2024.

ELSS Fund Calculator

There is a tool that displays your ELSS Fund returns. It depends on your scheme and investment method. Like you have invested in Lump sum or invested through SIP.

This can be calculated by entering the investment amount, tenure and expected return % in the ELSS SIP calculator. ELSS SIP Calculator

Tax Benefits: ELSS Fund Tax Benefits

In an ELSS or Equity Linked Savings Scheme, an individual or HUF can save up to Rs 1.5 lakh under section 80C of the Income Tax Act 1961.

This means that Rs 1.5 lakh deposited in ELSS is deducted from your annual total income. In this way you can save a substantial amount in the form of income tax.

ELSS Fund Redemption (Payment Process)

In fact, there are as many tax saving investment options as possible. ELSS Fund is the only option with the shortest lock-in period (only 3 years) among them.

After the lock-in period of 3 years, you can redeem it, or get paid.

Now if you want to know whether these ELSS can be redeemed even within 3 years? So my answer would be – not at all. Because ELSS funds do not allow to receive payment before 3 years.

It is recommended by financial experts to invest for 5 to 7 years to get good returns from ELSS.

Redeem in odd situation

In case of exceptional circumstances like death of the investor, the nominee or legal heir can sell the investment only after 1 year from the date of allotment of the unit.

We can understand this in this way that if the investor dies after 5 months of buying the unit, then the nominee will get the unit at the same time. But he will have to wait for 7 months to sell the unit.

All those units get transferred to the nominee, but he cannot sell them for 1 year.

In this way the lock-in period is reduced from 3 years to 1 year in the event of the death of the investor.

Which is better NPS or ELSS

Although the tax benefit in NPS is ₹2 lakh per annum, of which ₹1.5 lakh is available under section 80C and ₹50000 under section 80CCD(1)B.

The maturity period of NPS is when the investor attains the age of 60 years, whereas the maturity period of ELSS is only 3 years.

Over a long period of time, the risk in ELSS gets reduced, and the compounding policy also gives good returns.

Top 5 Best ELSS Fund in 2021

While choosing an ELSS fund, it should be reviewed on various parameters, only then one should be selected.

The decision should be taken based on the financial goals of an individual and his risk taking ability.

Here in the table below is a list of some of the best performing ELSS Funds, which have shown good returns over the years.

ELSS FUND NAME

3 YEAR RETURNS

1 YEAR RETURNS

Mirae Asset Tax Saver Fund

15%+

36%+

Axis Long Term Equity Fund

15%+

20%+

Canara Robeco Equity Tax Saver Fund

12%+

34%+

Aditya Birla Sun Life Tax Relief 96 Fund

12%

16%

Motilal Oswal Long Term Equity Fund

12%

16%

Important notice- The figures in the above list are for your information only. Investors are advised to invest only after collecting the necessary information from their level before investing, considering their financial goals, risk appetite and returns.

Is ELSS safe: Is investing in ELSS funds safe?

If your objective is only to save tax then it is advisable not to invest in ELSS as ELSS is actually a part of equity scheme.

So one should always keep in mind that equity schemes can be risky. However, with the shortest lock-in period as well as tax savings and long-term investment, this fund can deliver much higher returns than other savings schemes.

While choosing an ELSS, one should invest only after considering its risk, lock in period and returns of previous years.

I believe this post ELSS Fund What (What is ELSS Fund in Hindi) You would have liked

E-KYC has become very important in today’s time like if you want to open your bank account then you need ekyc for that, or if you want to get pan card then ekyc is required. So we can say that doing ekyc helps you in many things.

In this blog we are going to talk about ekyc, what is ekyc and how to get it done etc. so that you can get help to get ekyc done.

What is KYC

The full form of KYC is- Know Your Customer. It simply means- Know your customer.

It is a process in which a financial or other institution obtains information about the identity of its customer, his address or his age, date of birth, etc.

He also verifies these information through statutory certificates. This process of identifying the customer is called KYC.

What is eKYC

e-KYC Means : Electronic Know Your Customer

It can be understood in this way that the process of authenticating your customer’s identity in a digital or electronic way is called e-KYC.

In this, the process of customer identification is accomplished with the help of digital or electronic devices instead of paper certificates.

e-KYC Aadhar card based is a paperless process, What you must do before investing in mutual funds, Otherwise you will not be able to invest in mutual funds.

For investing in mutual funds e-KYC process of

Before investing in mutual funds, you have to complete the KYC process. You can do this either offline or online.

If you want to know about Mutual Funds then detailed information about it what is mutual fund, and how to invest in, is told through the article.

You can do e-KYC for investing in mutual funds from the website of CAMS Kra or iciciprudential. But while doing KYC with CAMS Kra, there is a restriction that you have to invest in any fund at the same time.

These restrictions are not comfortable for a new investor.

So today we will understand the process of e-KYC from ICICI Mutual Fund website; Because it does not require investment along with doing KYC.

Online e-KYC Required forms to be kept ready for

  1. mobile number
  2. E mail ID
  3. Mobile or laptop computer with camera for taking photos
  4. PAN card scanned image
  5. Scanned image of front and back of Aadhar card

E-KYC process steps

  1. In your mobile or computer browser, type- ICICIPRUAMC.COM/ONLINE-KYC

e-KYC

  1. When the online KYC page opens, first type your name.
  2. Enter E-mail ID, OTP comes on this E-mail ID.
  3. Enter your PAN number.
  4. Enter your 10 digit mobile number.
  5. Tick ​​the check box, and then click or type the Get OTP mark.

e-KYC

  1. Click on Choose File to upload ID Proof like PAN Card. And upload the already scanned image.
  2. As soon as the PAN is uploaded, the photo and its details will appear, which you should check carefully. If the information is correct, go to Next.
  3. Upload the front and back images of the Aadhar card for proof of address as per the procedure given above.
  4. Check Aadhar card details if it needs some correction; So you can correct that too.

Process of e-KYC continue

  1. Tick ​​the box for Term & Condition and go to the next step.
  2. All your information will be displayed on the next page; Check it out carefully.
  3. Select some other information like Address Type (Residential / Business) etc. and Annual Income etc., and proceed further.
  4. In the next step, select the details of Fatca etc. and go to the next step.
  5. Upload the scanned image of your signature on plain paper; And tick on Term & Condition.
  6. In the last step of e-KYC you have to upload your photo and video; For which click on face image. After clicking the photo a number will be displayed on the screen; Who has to speak in front of the camera. Thus this step is completed and a thank you message is received.
  7. After completing this process of e-KYC KYC Form Screen A page of . From where the link of Normal e-sign or Aadhar e-sign appears. In which you can complete this process through OTP by entering the details of Aadhaar.

How e-KYC is more simple and useful

  1. In online KYC, the entire process is completed in a very short time; Whereas the offline process sometimes takes 2 to 4 weeks.
  2. You do not need to collect paper certificates for e-KYC. This makes it easy for the customers as well as the service provider company. It works only with Aadhar card.
  3. Normally collecting a lot of records in KYC leads to unnecessary expenditure of money; Whereas in e-KYC this process is completed without any extra cost.
  4. We do not have to manually fill in the information because of the autofill feature; Which takes less time. Autofill also prevents type errors; Because all the information is taken automatically.

In this blog, we are going to know about ULIP, whether you should invest in ULIP or not, what can be its advantages, what can be the disadvantages etc. You will get to know all the information related to this blog.

Fill out a ULIP form

The full form of ULIP is

U – unit

L-linked

I- Investments

Plan P

Meaning of ULIP

ULIP (Unit Linked Insurance Plan) is a product of market linked investment. Also it is an insurance policy.

So it is a mix of insurance and investment that insurance companies bring to you.

It was first launched by the Unit Trust of India (UTI).

We can say that ULIPs are Insurance + Investment products.

How does ULIP work?

When you pay any one premium of the ULIP; Then a part of it is invested for insurance coverage and a part of the premium of the policy is invested in equity or debt funds.

ULIPs have a lock-in period of 5 years. This means that normally you cannot redeem it before 5 years.

Depending on the risk appetite of the customers, the facility to invest in large, mid, small cap, debt or balance funds is available.

You can also switch it between different funds.

There are two types of time duration in ULIPs.

premium term

It means for how long you want to pay your premium.

term of premium single premium That is, you can invest in one go.

Second fixed period For example, premiums can be deposited for 5, 7 or 10 years.

The third option is that you can deposit the premium at fixed intervals like monthly, quarterly, half-yearly or yearly.

policy term

The policy term of your ULIP can be from 5 to 30 years.

It is worth noting that the longer the premium payment period, the higher the premium amount.

This happens because the insurance company is giving you more time to pay the premium.

What are the tax provisions on ULIPs?

It is an EEE (Exempt, Exempt, Exempt) Exempt, Exempt, Exempt type product.

By investing in ULIP, tax exemption can be availed under section 80C of Income Tax on annual investment of up to 1.5 lakhs.

ULIP It is also exempted from taxation under LTCG (Long Term Capital Gains).

Tax exemption is also available on the payment received on its maturity.

ULIP charges

There are various types of charges in ULIPs. Let us now know about the charges of ULIP.

premium allocation charge

It is a part or percentage of the premium.

Policy Administration Charges

This charge is levied for the maintenance of the policy etc.

It is taken as a percentage; Or it can also be taken in flat form.

mortality charge

It depends on the health and age of the investor.

These charges are deducted at your unit.

fund management charge

It is a part of each NAV. This charge may vary according to each company and its different plans.

partial withdrawal charge

This charge is levied on withdrawing some part of your fund in the medium term itself.

Apart from this, there are surrender charges, which are levied if the payment is taken before the maturity period.

fund switching charge

These charges are levied on switching from one fund to another.

Is ULIP Good What It is better to invest in ULIPs

To invest in ULIPs, you need to have patience as well as a long time to invest.

If you are planning to invest in ULIPs; So make sure to think carefully whether you see that ULIP as an investment or as an insurance.

as a life protection product ULIP Nothing special.

Because the insurance on ULIPs is limited to a maximum of 15 to 20 times your annual premium.

for example- If you buy a ULIP with a security cover of Rs 1 crore, your premium will be ₹ 2 to 3 lakh.

Whereas a person of 30 years can take a term insurance of one crore with an annual premium of 10 to ₹ 15000.

ULIPs and Mutual Funds

Like mutual funds, you can invest in ULIPs by paying premiums at a fixed interval.

You can choose the premium as per your investment needs.

Like mutual funds, the rate of return in ULIPs is determined by the NAV.

ULIPs have a minimum lock-in period of 5 years; And it also includes insurance cover.

Similarly, some mutual funds like ELSS funds also have a lock-in period of 3 years.

The annual amount deposited in it up to Rs 1.5 lakh is also exempt from income tax under section 80-C of Income Tax.

Benefits of ULIPs

  • These are called long term wealth creation funds.
  • Investing in it for a long period of time can give a return of 10 to 12% along with security cover.
  • In this, 10 times your annual premium gets Sum Assured or Jeevan Suraksha cover.
  • ULIPs also give you the option to switch to different investment plans as per your requirement.
  • Profits from ULIPs are tax free as per 80C and 10D of Income Tax.
  • Apart from switching from one plan to another, you can also partially withdraw your investment.
  • You can also increase your investment by opting for a single premium payment option.

Risk Factor about ULIP Risks of ULIP

You must have seen advertisements of insurance companies.

They say at the end that “this market is subject to risks, please read the policy document carefully before investing” so make sure to go through it thoroughly before investing in ULIPs.

The returns of your Unit Linked Insurance Plan are directly linked to the performance of the market. Therefore, it may also have to face its risk in future.

Top companies from where to invest in ULIPs

  • Life Insurance Company of India (LIC)
  • SBI Life
  • Bharti Aksa Life
  • PNB Met Life
  • Canara HSBC
  • HDFC Life
  • Bajaj Allianz
  • Kotak Mahindra Life
  • Aditya Birla Sunlife
  • Max Life Insurance
  • ICICI Prudential
  • Aviva Life Insurance

Best ULIP in 2021

Given below is a table of some Unit Linked Insurance Plans (ULIPs).

Based on their performance over the past few years, you will be able to take the right decision to invest in ULIPs.

ULIP
Table By- moneycontrol.com

Conclusion

An investor should always keep investment and insurance separate.

Many investors opt for ULIP or traditional insurance to get both insurance and investment together.

But by taking such a plan, you only get less insurance in comparison to your invested capital.

Through term insurance, you can get a protection cover of one crore in very less money.

Similarly, for investment, you can get good returns in the long run by investing in mutual funds etc.

Term Insurance As we know that this is the form of life insurance. By this your family gets financial protection. Whose nominee gets the entire amount during the death of the insured person.

Generally people think of term insurance as general insurance. While there is a fundamental difference between these two.

Through today’s article, you will be given detailed information about what is term insurance, when and how to take it, and what are its benefits?

What Is Term Insurance 

Term insurance is the most effective and simplest option to take life insurance.

Term insurance is also a type of life insurance, which provides financial protection cover for a certain period or for a specific ‘term’.

It provides financial security to the family of the insured in the absence of the insured.

Term insurance plan is the purest form of insurance policy.

In this, the person taking the insurance keeps paying the premium for a specified period.

If the insured dies during this stipulated period, the sum assured or the sum assured is paid to his/her nominee.

If even after the expiry of this period the insured remains healthy and does not die; So nothing is received in return for the premium paid.

Important Points Of Term Insurance

It can be taken by any person from minimum 18 years to maximum 65 years.

It is the freedom to choose. You can choose it singly or jointly as per your convenience.

In this, the option of paying premium is available.

You can choose to do this as a lump sum or at regular intervals like monthly, half-yearly or yearly.

Its premium amount depends on the age of the insured and the amount of insurance taken by him.

term insurance(Term Insurance) how much should be taken

It is advisable to take term insurance for an amount of 20 times the annual income of an individual.

For example, the annual income of a person is ₹ 5 lakh; So he should get term insurance of 500000 X 20 i.e. total 1 crore.

At what age to buy term insurance

Term Insurance The ideal age to buy is considered to be 30 years.

By this age, responsibilities start coming on any person. becomes a source of income for him; His financial condition gets better.

By that time they are planning to build a family or buy a house.

As you get older, the insurance premium also goes down.

As people age, their health starts deteriorating. In this case, the risk of the insurance company increases; And with increasing age the premium also increases.

The most important thing about term insurance is that its premium remains the same from beginning to end.

Hence, the sooner you take insurance, the lower will be your premium.

You can know your premium with the help of Term Insurance Calculator.

Benefits Of Term Insurance 

There are some benefits that differentiate term insurance from general insurance-

1- The option of getting the sum assured as monthly income is available with the nominee of the insured.

2- There is facility to take joint policy in this, husband and wife can take term insurance jointly.

3- There is a facility to create more than one nominee in term insurance; In this, the sum insured can be divided as a percentage among all the nominees.

4- Benefit of accident cover, facility of critical illness cover and facility of terminal illness cover can be added as a rider.

These riders are low priced but very important ones which are included with the term plan itself.

5- There are also plans with premium refund facility, in which the principal deposited by you is returned at the end of maturity.

Who Should Take Term Insurance 

Generally people consult an agent to get insurance; And he can confuse you about this.

If it is necessary to have insurance for all your family members, he advises as follows; So that’s not correct.

Term insurance should be taken by only the person who is the main earner in the family and the rest of the family members are dependent on him.

In the absence of the most prominent person in the family, how will the other members of the family be fed?

In such a situation Term Insurance The money received from this will help in completing all the necessary tasks of the family.

for example- Some 25 year old young man who is not married yet and his parents are also in good financial condition.

In such a situation, because there is no dependent on that young man and unfortunately even if he is not there, no financial crisis is going to come on the family; That’s why term insurance is not recommended for that young man.

Similarly, if both husband and wife are the earners in a family, then both the people should take term insurance jointly.

Simply put, if you are the sole breadwinner in your family;

So your term insurance protects you against financial loss to family members if you are unfortunately not there; and provides financial security to the family.

What to keep in mind while buying Term Insurance Plan 

Your life cover must be big enough that in your absence all your liabilities like loans etc. and all future goals are met.

There are some other aspects of the term plan which need to be taken care of.

If these are not taken care of, then your claim may get rejected and it will prove to be another big blow to your family.

Some things that must be kept in mind while taking term insurance-

Give accurate information about yourself

Trust is the basis of insurance.

If the insurance company finds that you have given incorrect information in the form, it will reject your claim.

For example, a smoker should not tick the non-smoker category; Because there is some difference in the premium of both.

Similarly, even if you hide the information about genetic diseases etc., the claim is not received.

Do a medical test

Term insurance is a very high value insurance cover.

In such a situation, in general, companies conduct medical tests.

If a company only asks you to fill out a declaration about your health, it is possible that your claim may be in jeopardy.

Because then the company can get excuses for rejecting the claim.

Don’t just look at low premiums

You may miss out on other benefits by opting for a term plan with the cheapest premium.

It may also happen that the claim settlement history of that company is very bad.

In such a situation, instead of low premium, the company should choose a policy after looking at the company’s good record of claim settlement and other facilities like accident insurance, critical illness etc.

Be sure to pay attention to the term of the policy

How many days should be the policy term or till what age should it be.

In response to this, it can be said that you must take an insurance cover when you are relieved of your main responsibilities, or in general till the age of 60-65 years.

Choose the right mode of premium payment

Term Insurance After taking the plan, try not to miss out on paying its premium.

For this, the option of online mode like ECS or e-mandate can be opted.

Or the premium can be added to the biller of your bank account through net banking.

With these methods, the premium amount will automatically be deducted from your bank and deposited in time.