What is the difference between SIP, ELSS, and mutual funds?

Let us dwell on this question by going step by step

Mutual Fund (Ref)

1. A mutual fund is a financial vehicle that pools assets from shareholders to invest in securities like stocks, bonds, money market instruments, and other assets
2. Mutual Fund is managed professionally by a fund manager
3. Annual fees, expense ratios, or commissions are part of the Mutual Fund that may affect the overall returns
4. It provides small or individual investors access to diversified, professionally managed portfolios
5. There are several kinds of categories, representing the kinds of securities they invest in, their investment objectives, and the type of returns they seek.

ELSS (Ref)

1. As mentioned in the Mutual Fund definition, there are different types of Mutual Funds according to the objective they cater
2. In line with this, there is an ELSS(Equity Linked Saving Scheme), that is used for meeting the dual objectives of tax-saving and capital appreciation
3. Every Mutual Fund House provide an ELSS scheme that is similar in nature and provides partially differential results owing to their fund composition

Systematic Investment Plan – SIP (Ref)

1. Mutual Funds provide the investors multiple ways to invest in the vehicle
   1. One-time (Bulk)
   2. Fixed SIP (Fixed Amount on scheduled date)
   3. Variable SIP (Variable Amount on scheduled date)
2. SIP is considered a durable vehicle as it provides
   1. Rupee/Dollar Cost Averaging
   2. Discipline towards investing
   3. Ability to overlook short-term turbulence for meeting long-term goals

SIP has been the mantra for retail investors since 2008 to build enormous wealth during many upcycles owing to their resilience during the downtrends

I am sharing a short video from ET Money posted on Youtube that provides the rationale why not to time the market

Hope this helps

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