Generally Speaking

ELSS is one of the popular tax-saving options for savvy investors – it is not only a diversified equity mutual fund with a majority of the corpus invested in equities, it also has a lock-in period of three years from the date of investment. The returns from investment in an ELSS are based on schemes in the equity markets and these returns are tax-free.

Looking at the previous years’ returns, some of these funds have grown as much as three times in five years. Also, there is no limit on investment in ELSS funds, and you can claim tax deduction on up to Rs 150,000 under Section 80C of Income Tax Act.