What is an Equity Linked Saving Scheme (ELSS)?
If you’re looking for tax saving mutual funds look for an ELSS mutual fund or Equity Linked Savings Scheme. It is a diversified equity mutual fund that helps you to save tax as per the current tax laws with the growth potential of equities. Unlike all other types of tax saving investments, ELSS has a lock-in period of just 3 years, which is the lowest! You can invest in ELSS through lumpsum or Systematic Investment Plan (SIP) and also benefit from rupee-cost averaging and compounding. ELSS could be the ideal option to help beat rising inflation in the long term and help grow your money.
Key Benefits of Tax Saving ELSS Mutual Fund
- Dual benefits (Aim to create wealth & Save tax)
- Shortest lock-in of 3 years
- Minimum investment of Rs 500/-
- LTCG exempt upto Rs 1,00,000/-
- Save upto Rs 46,800/-