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.
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References[edit]
- ^ T, Madhu. "Tax saving: Recycling your ELSS investments is a very bad idea". The Economic Times.
- ^ Five mistakes to avoid when investing in an ELSS fund
- ^ "Funds aimed at enabling investors to avail tax rebates under Section 80-C of the Income Tax Act".
- ^ Zaidi, Babar. "Investment in SIPs yields better returns than timing the market: Study". The Economic Times.
- ^ "What's a mutual fund SIP?".
- ^ "Should you invest a lumpsum in ELSS?". The Economic Times.
- ^ "Business News Today: Read Latest Business news, India Business News Live, Share Market & Economy News".