What Is An Equity Linked Saving Scheme (ELSS)

Equity Linked Saving Scheme or popularly known as ELSS is a tax-saving investment under Section 80C of the Income Tax Act, 1961. An ELSS Fund is the only type of Mutual Fund eligible for tax benefits under Section 80C.

What is Tax Saver Mutual Fund

Tax saving mutual funds are just like any other mutual funds with an added tax-saving benefit. The special feature of this type of mutual fund is that the investments made in the tax-saving mutual funds are eligible for tax benefits under section 80C of the Indian Income Tax Act. Most of the tax saving mutual funds are ELSS schemes and make investments in the growth-oriented equity market. They have a lock-in period of 3 years.