ELSS FUNDS

"AMFI-Registered Mutual Fund Distributor"

Client Login  Inquiry Now

Page Title

Home / ELSS FUNDS

ELSS Funds

As the name suggests, Equity Linked Saving Scheme or ELSS is a type of fund scheme that primarily invests in the stock market or Equity.

Investments of up to 1.5 Lac done in ELSS Funds are eligible for tax deduction under section 80C of the Income Tax Act. The advantage ELSS has over other tax Saving instruments is the shortest lock-in period of 3 years.

Link Name

This means you can sell your investment only after 3 years, from the date of purchase! However to maximise returns from ELSS funds, it is recommended to keep your investments intact for the maximum duration possible. If you have an ELSS SIP (Systematic Investment Plan), each instalment has a lock-in period of three years, which means each of your instalments will have a different maturity date.

Key Takeaways


  • Shortest lock-in: ELSS has the shortest lock-in period of three years. Tax-saving fixed deposits have a five-year lock-in, while PPF has a 15-year maturity. All in all, ELSS offers more liquidity in the medium term.

  • Potentially higher returns: Unlike ELSS where return is market linked, other 80C investments like PPF or FDs are fixed income products. ELSS has the potential to generate significantly higher wealth in a medium to long-term investment horizon.

  • Better post-tax returns: Long Term Capital Gains from ELSS are tax free up to limit of ₹1 lac. Gains over 1 lac attracts a tax rate of just 10%. Lower tax rates, coupled with higher returns ensure the best post tax returns.

  • Regular investing is hassle-free and convenient:It is easy to invest in ELSS funds through a monthly SIP.