Mutual fund investment offers individuals a great opportunity to build wealth. Depending on your financial objective and your risk appetite, you should decide what type of investment to choose. Individuals who do not have an appetite for high risk generally settle for investment schemes that offer low-interest rate but steady cash flow or a defined surplus that they receive after maturity. But there are other mutual fund schemes whose returns are subject to market’s performance, but they give you a chance of fetching far better returns, at the same time also carry a high amount of risk. Equity Linked Saving Scheme is one such mutual fund investment scheme, which gives investors a chance to grow as well as save taxes at the same time. That’s because as per Section 80C of Indian Income Tax Act, ELSS is a tax saving scheme where an investor can benefit claims worth Rs. 46, 800 with an investment of up to Rs. 1.5 lakh.

So should you invest in ELSS or any other tax saving scheme? Is this the right time to invest in ELSS? When is the correct time to invest in ELSS? Or is a five year fixed deposit safer option? Well if these are the questions coming to your mind too, we’ve got some scoop for you.

Anytime is a good time to invest in ELSS. First of all, ELSS is a tax saving scheme which means it is aiding investors in saving money and also giving them a chance to grow their income. The prevailing market conditions may seem unfavorable to invest, but bear in mind that ELSS is an equity-related scheme. Historically, equity schemes have proven to perform well over a longer time period. So even if the fund is currently under performing, there is a high chance of the fund performing in your favor in the long run.

Investors with long term financial strategy generally tend to make the most out of their investments. So it is always advisable to keep a long term investment horizon while investing in equity. And since ELSS highly invests in equity, investors should keep a long term investment horizon. This doesn’t just help them diversify risk, but also frees them from thinking about the prevailing market conditions. A long term investor doesn’t worry about the current market. On the contrary, a long term investor knows that it is impossible to predict the market and plays safe by choosing to invest for a longer time period.

So now that you know that it is advisable to invest in ELSS, have you decided to invest right away? If yes, then one of the best ELSS scheme currently available in the market is Axis Long Term Equity Growth. So if you want to increase your chances of fetching a decent amount of returns from an ELSS investment and save tax at the same time, you should consider investing in Long Term Equity Growth fund scheme.