Equity Linked Savings Scheme

Equity Linked Savings Scheme

What is ELSS ?

ELSS stands for Equity Linked Savings Scheme, is an open-ended Equity Mutual Fund. Basically, ELSS is a tax saving mutual fund that helps you avail tax deductions and also gives you an opportunity to grow your money. The major portion of the investment in ELSS is in equity. This tax-saving mutual funds can be used to save income tax up to Rs. 1 to 1.5 lakh under Section 80C of the Indian Income Tax Act. ELSS funds come with a lock-in period of
three years and invest a majority of their portfolio in the stock market.
It is suitable for investors having a high-risk profile as returns in ELSS fluctuate depending upon the equity market and there are no fixed returns. You have to do thorough research when you invest in an ELSS Fund.

Look at these points before investing:
– Long term performance or low-risk investment
– Tax saving Mutual Fund Schemes
– Fund details like fund invest approach, the expense ratio of the fund & how volatile the fund has been in the past.