Equity Linked Savings Scheme
ELSS stands for Equity Linked Savings Scheme, is an open-ended Equity Mutual Fund. Basically, ELSS is a 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 Law.
ELSS funds come with a lock-in period of three years. It is suitable for investors having a high-risk profile as returns in ELSS depend on the equity market and there are no fixed returns. You have to do detail research when you invest in an ELSS Fund.
Look at these points before investing:
– Perform for a long term 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.