What is ELSS?
Equity-linked saving scheme or ELSS is an equity-oriented mutual fund that primarily invests in equities. It is a category of mutual fund that offers tax benefits. Investment in ELSS qualifies for tax benefit under section 80C of the Income Tax Act, 1961.
ELSS has a lock-in period of 3 years, which means you can’t withdraw money for three years from the date of investment. You can invest in ELSS either through SIP or lump sum. SBICAP Securities Ltd., allows you to invest in a range of ELSS funds as per your choice.
Benefits of ELSS:
Tax benefit under section Income Tax Act, 1961
Investment through SIP
Professional fund management
Lowest lock-in period of 3 just years against other tax-saving instruments
Potential for earning higher returns
Inculcate a disciplined savings habit by investing as low as Rs. 500 per month