What is ELSS?
An Equity Linked Savings Scheme (ELSS) is an equity-oriented mutual fund that invests at least 80% of its total assets in equity shares. It qualifies for tax deduction under Section 80C up to ₹1.5 Lakh per financial year.
Why Investors Choose ELSS
- Shortest Lock-in: Has a 3-year lock-in period—the shortest among all 80C options (compared to PPF’s 15 years and Tax FD’s 5 years).
- Wealth Creation: Offers market-linked equity growth potential over the medium to long term.