What is ELSS?

What is ELSS?

ELSS is a type of diversified equity mutual fund which is qualified for tax exemption under section 80C of the Income Tax Act, and offers the twin-advantage of capital appreciation and tax benefits. It comes with a lock-in period of three years.


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    • How much can I invest in ELSS?

      You can invest any amount in ELSS. But the overall tax exemption limit will be capped at ₹1,50,000 as per section 80C.

    • At what age should you invest in ELSS?

      You can invest in ELSS at any age. However, it is advisable to start investing more at a younger age, and gradually shift to lower risk debt instruments to reduce risk in your portfolio with passage of time.

    • How is ELSS different from other tax saving options like PPF & NSC?

      ELSS is different from other tax saving investments in many ways. While most of them are debt instruments, ELSS is equity based. It has a relatively lower lock-in than schemes like PPF, NPS, etc. However, being market linked, it takes on more risk to ...

    • Investment

      Investments are expenses that the taxpayer acquires during the year that are subtracted from his gross income. You can avail the benefit of Rs 1,50,000 U/S 80C+80CCC+80CCD(1) 80C =  LIC, PF(Provident Fund), PPF(Public Provident Fund), EPF(Employee ...