Equity Linked Savings Scheme Explained

An Equity Linked Savings Scheme, popularly known as ELSS, is a type of diversified equity scheme which comes, with a lock-in period of three years, offered by mutual funds in India.^{[1] [2]} They offer tax benefits under the Section 80C of Income Tax Act 1961.^[3] ELSSes can be invested using both SIP (Systematic Investment Plan) and lump sums investment options.^{[4] [5] [6]} There is a three years lock-in period, and thus has better liquidity compared to other options like NSC and Public Provident Fund.^[7] Mutual funds are subjective to fluctuations in the market.

See also

• National Pension System (NPS)
• Mutual fund
• Income tax in India

Notes and References

1. News: Tax saving: Recycling your ELSS investments is a very bad idea . The Economic Times . T . Madhu .
2. http://www.business-standard.com/article/pf/five-mistakes-to-avoid-when-investing-in-an-elss-fund-117011600370_1.html Five mistakes to avoid when investing in an ELSS fund
3. Web site: Funds aimed at enabling investors to avail tax rebates under Section 80-C of the Income Tax Act..
4. News: Investment in SIPs yields better returns than timing the market: Study. The Economic Times . Zaidi . Babar .
5. Web site: What's a mutual fund SIP?.
6. News: Should you invest a lumpsum in ELSS?. The Economic Times .
7. Web site: Business News Today: Read Latest Business news, India Business News Live, Share Market & Economy News .