Investors weigh SIPs against lumpsum payments for ELSS mutual funds in India

New Delhi, November 29: Equity-Linked Savings Schemes (ELSS) provide tax benefits under Section 80C of the Income Tax Act, allowing investors to save up to Rs. 1.5 lakh annually. ELSS has the shortest lock-in period of three years among tax-saving schemes. Investors can choose between Systematic Investment Plans (SIPs) and Lumpsum payments for ELSS. SIPs allow for smaller, regular contributions, making it easier to reach the tax-saving limit without a large upfront payment. This method also helps reduce market risk through cost averaging. SIPs promote disciplined investing and can enhance returns through compounding. An online SIP calculator can assist in planning monthly contributions to meet tax-saving goals effectively.