What is a ELSS (Equity Linked Saving Scheme) ?
ELSS (Equity Linked Saving Scheme) is an open-ended equity mutual fund that offers tax benefits under Section 80C of the Income Tax Act. These funds primarily invest in equity and equity-related instruments and come with a mandatory 3-year lock-in period. The tax deduction benefit is available for investments up to ₹1.5 lakh per year, making it an attractive investment for tax-saving purposes.
Why Choose DeepPriya for ELSS (Equity Linked Saving Scheme) ?
- Higher Returns Potential: Since ELSS invests in equities, they offer the potential for higher returns compared to traditional tax-saving instruments.
- Short Lock-In Period: With a lock-in period of only 3 years, ELSS offers quicker access to funds compared to other long-term tax-saving schemes like PPF.
- Diversification: ELSS funds invest in a mix of equity stocks, providing diversification and reducing risk compared to single-stock investments.
- Compounding Growth: The long-term nature of ELSS funds allows your investments to benefit from compounding, enhancing wealth over time.
- Liquidity After Lock-In: After the 3-year lock-in period, ELSS funds provide liquidity, allowing you to redeem or switch funds based on market conditions.
- Professional Management: ELSS funds are managed by professional fund managers who handle stock selection and portfolio management, ensuring optimal returns for investors.
FAQs for ELSS (Equity Linked Saving Scheme)
ELSS pools investor money into equity-based funds, offering tax benefits up to ₹1.5 lakh under Section 80C.
No, ELSS investments are locked in for 3 years. After that, you can withdraw anytime.