How do ELSS funds aid in tax saving and can they be pledged for F&O trading?
Equity Linked Savings Schemes (ELSS) are mutual funds offering tax-saving benefits under section 80C of the Income Tax Act, 1961. These funds primarily invest in equities, presenting opportunities and risks akin to equity-oriented schemes.
Highlights:
- Tax Deduction: Investments in ELSS offer tax deductions up to ₹1.5 lakhs.
- Growth-Oriented: As ELSS funds mainly invest in equities, they have the potential for high returns.
- Lock-In Period: ELSS comes with a 3-year lock-in period, post which they can be easily redeemed.
- Pledge: Until the lock-in period is over, ELSS funds cannot be pledged. Post lock-in, if they are part of the approved securities list, they can be pledged for F&O trading.
Related Articles
Can I use mutual funds as collateral for trading in the F&O Segment on FYERS?
Yes, you have the flexibility to invest in Mutual Funds and subsequently pledge them for acquiring additional trading margins in the F&O Segment. It's important to note, however, that not all mutual funds qualify for pledge. For the list of ...
What happens if my intraday F&O positions aren't closed by end of day?
Not square off open positions by the end of the day can lead to specific consequences. Here's what you need to know: Auto Square-off by RMS: If your intraday F&O positions remain open, our Risk Management System (RMS) will take action. For segments ...
Can I sell my pledged shares without unpledging them at FYERS?
No, you cannot sell shares that are currently pledged. If you've pledged shares and received additional trading margins for Equity F&O, these shares are bound and cannot be sold as long as they remain pledged. To correctly sell your pledged shares, ...
Is pledging my fixed deposit to trade in F&O contracts possible at FYERS?
Currently, we at FYERS don't accept Fixed Deposits for pledging to facilitate trading in Futures and Options (F&O) contracts. This policy stems from operational and reconciliation constraints. However, keeping in mind the dynamic nature of financial ...
When will my pledged stocks be invoked at FYERS?
If, after trading with your pledged margins, your account indicates a debit balance (a negative figure), you are obligated to clear this by transferring additional cash funds. Failing to infuse the required funds will lead to our risk team invoking ...