Birla Sun Life Tax Relief 96 (BSL Tax Relief 96) is an Equity Linked Savings Scheme (ELSS) that offers tax savings up to Rs 1.5 lakh under section 80C of the Income Tax Act, 1961 and opportunity to benefit from stock market growth. Investments in BSL Tax Relief 96 are locked-in for three years.
The scheme also offers systematic investment plan (SIP) wherein investors can set aside an amount for investment every month so that it grows into a corpus over a period of time.
"You can invest small amounts, even Rs 500 per month with ELSS. Since your money is managed by expert fund managers you don't have to sweat over how to invest. What's more, you can invest in ELSS through systematic investment plans (SIP) which allow you to make regular monthly investments. This investment route is profitable as well."
Why Birla Sun Life Tax Relief 96?
Birla Sun Life Tax Relief' 96 is one of oldest ELSS scheme.
"The value of monthly SIP of Rs10,000 could have grown to Rs 10.39 lakh in just 5 years as on 30 September 2016. If you had started this process in April 2008 by investing the same monthly amount in the growth option of the scheme you would have saved Rs 22.16 lakh.
"By investing Birla Sun Life Tax Relief' 96 an open ended equity linked savings scheme with a lock in period of 3 years you do not just save tax but also enable for long term capital growth. To enhance the ease of investing, you can invest in the scheme through an SIP."
ELSSs such as Birla Sun Life Tax Relief 96 are suited for those who want to save taxes and also benefit from opportunities offered by stock markets without worrying about volatility.
Ideal for young investors
Often, young investors prefer to stay away from stock markets, thinking that they need to put in huge sums of money to benefit meaningfully. The fear of volatility makes matters tougher for them to think of investing in stocks. ELSSs offer a good option for such young investors wherein they reap the benefits of both tax savings and good returns on their investments.
