Equity Linked Savings Scheme or ELSS is a mutual fund that invests primarily in equity or equity-related securities. Let’s look at the most notable aspects of ELSS funds so you can decide whether they’re right for you.
Updated Mar 17, 2021 | 09:58 IST
ELSS or tax saving mutual funds which provide the dual benefit of tax saving and wealth accumulation and come with a modest lock-in period of 3 years. Here are top plans by performance Top performing ELSS mutual funds ( by returns) to help you save tax this year | Photo Credit: BCCL
The last date to make investments in order to save tax for the financial year 2020-21 is March 31, 2021. There are myriad tax-saving instruments for same but investors should not limit their choices to the safety of Public Provident Fund (PPF) and National Pension Scheme (NPS) as there are other avenues such as ELSS schemes which also give the additional benefit of wealth accumulation.
ELSS is a type of mutual fund that offers tax deduction up to Rs 1.5 lakh per year. They have the shortest lock-in period of three years among all investment options under section 80C of the Income Tax Act