Updated Feb 27, 2021 | 08:09 IST
Look at the portfolios of the ELSS schemes and ensure that the ones you have selected have varied allocation to different sectors and stocks
Looking to invest in ELSS to save tax? Know things to keep in mind before choosing an ELSS
With the tax-saving season for this financial year coming to a close, several taxpayers zero-in on ELSSs due to its shorter lock-in and potential for high returns compared to most other tax savers which either have a longer tenure or are debt-oriented, and low returns over longer tenures.
Since ELSS is often the first equity fund category that young investors invest in, they should choose their fund carefully, so that their initial experience in equity investing is good and they get hooked to this asset class for the long term. ELSS is eligible for tax deduction under Section 80C up to Rs 1.5 lakh.