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
India, officially the Republic of India ( Hindi: ), is a country in South Asia. It is the seventh-largest country by area, the second-most populous country, and the most populous democracy in the world. Bounded by the Indian Ocean on the ...
. They offer tax benefits under the Section 80C of Income Tax Act 1961. ELSSes can be invested using both SIP (
Systematic Investment Plan) and
lump sum
A lump sum is a single payment of money, as opposed to a series of payments made over time (such as an annuity).
The United States Department of Housing and Urban Development distinguishes between "price analysis" and " cost analysis" by whether ...
s investment options. There is a three years lock-in period, and thus has better liquidity compared to other options like NSC and
Public Provident Fund.
Mutual funds are subjective to fluctuations in the market. There were many instances where the money you invested is the same or even lesser after 3 years in a mutual fund.
See also
*
National Pension System
National Pension System Trust (NPS Trust) is a
specialised division of Pension Fund Regulatory and Development Authority which is under the jurisdiction of Ministry of Finance of the Government of India. The National Pension System (NPS) is ...
(NPS)
*
Mutual fund
A mutual fund is a professionally managed investment fund that pools money from many investors to purchase securities. The term is typically used in the United States, Canada, and India, while similar structures across the globe include the SICAV ...
*
Income tax in India
Income tax in India is governed by Entry 82 of the Union List of the Seventh Schedule to the Constitution of India, empowering the Government of India, central government to tax non-agricultural income; agricultural income is defined in Secti ...
References
Tax-advantaged savings plans in India
{{India-econ-stub