Garima Singh’s investment in ELSS was her first investment in equity mutual funds and also a way to save on taxes

Delhi-based Garima Singh, 31, invested Rs45,0000 in ELSS in January 2019. Earlier she used to buy insurance policies and invest in PPF and tax-saving FDs as a part of 80C tax saving investments. But this time she decided to invest in ELSS funds. She has used up the rest of the Rs1.50 lakh limit in other investments and decided to invest the balance in ELSS.

ELSS appealed to her because it offers returns in the excess of 10 per cent with a minimum lock-in period of three years. “Other products with 80C investments have a higher lock-in period and lesser returns than ELSS. I realised that I needed to get started investing and there is no better way to do it than ELSS, as it also provides tax benefits. The lock-in period also means I will not be able to withdraw and it will continue growing,” she said. Singh believes that ELSS is the best bet when looking for long-term investments.

She has invested through Kuvera, an app that lets one invest directly in mutual funds. Like every millennial, Singh believes in flexibility and convenience and hence prefers to invest through apps. Investing directly also saves time and works out to be cheaper. The app also lets her track the value of  her investments.

Singh compared different ELSS funds and consulted her chartered accountant (CA)before finalising one.

She has some investments in equity and has also invested in shares of companies across different sectors. Currently, with the markets down, her investment portfolio has taken a beating. However, she is looking to invest more in shares so that the losses are made up when the markets rise. Her share investments are managed by her CA.