ELSS Tax Saving Funds
Compare ELSS (Equity Linked Savings Scheme) mutual funds that help you save tax under Section 80C while investing in equities. ELSS funds have the shortest lock-in period among all 80C options at just 3 years, and they offer the potential for higher returns compared to PPF or tax-saving fixed deposits. Browse NAV, returns, expense ratios, and fund ratings below.
Tax Saving under Section 80C
ELSS funds have a 3-year lock-in period — the shortest among 80C investments. Invest up to Rs 1.5 lakh per year for tax deduction.
Frequently Asked Questions
What is ELSS and how does it save tax?
ELSS (Equity Linked Savings Scheme) is a type of mutual fund that qualifies for tax deduction under Section 80C of the Income Tax Act. You can claim deductions up to Rs 1.5 lakh per financial year on your ELSS investments, reducing your taxable income. ELSS funds have a mandatory 3-year lock-in period — the shortest among all Section 80C options. They invest primarily in equities, giving you both tax savings and the potential for market-linked returns.
Is ELSS better than PPF or fixed deposits for tax saving?
ELSS offers the shortest lock-in (3 years vs 15 years for PPF and 5 years for tax-saving FDs) and the highest return potential since it invests in equities. However, returns are not guaranteed and your investment can lose value in bear markets. PPF offers guaranteed returns and full capital safety. Tax-saving FDs offer fixed returns but are fully taxable. ELSS is best for investors with a moderate-to-high risk appetite who can handle short-term volatility for potentially higher long-term returns.