Investing
ELSS
Also known as: Equity Linked Savings Scheme, Tax-saving mutual fund
An equity mutual fund that also saves tax under Section 80C, with a 3-year lock-in.
ELSS is a regular equity mutual fund with a tax bonus. Investing in it lets you claim up to ₹1.5L under Section 80C.
It has the shortest lock-in of any 80C option, just 3 years, versus 5 years for tax-saving FDs or 15 for PPF.
Because it invests in stocks, returns can be higher but also bumpy. Use it if you want tax saving plus long-term growth, not for money you need soon.
For example
Investing ₹1.5L in ELSS can save up to ₹46,800 in tax under the old regime, while the money stays invested in equities for growth.