Save Tax
Lowest lock-in period
Returns are linked to
stock market and are tax-free
Equity Linked Savings Schemes (ELSS) is a mutual fund investment that reduces your taxable income by ` 1,50,000. With a minimum lock-in period of just 3 years, ELSS has the potential to earn higher returns than most other tax-saving options as most of the portfolio is invested in the stock market.
ELSS MF Schemes vs other Tax Saving Schemes
ELSS | Tax-saving FD | ULIP | NSC | PPF | EPF | |
Lock-in period | 3 years | 5 years | 5 years | 5/10 years | 15 years | Till termination of employment |
Taxation aspect | capital gains are taxable post 1Lakh | Interest is taxable as per your IT slab | Maturity/claims proceed are tax-free | Interest is taxable as per your tax-slab | Interest is tax-free | Interest is tax-free^^ |
Returns (p.a.) | Market-linked# | 6.0%^ | Market-linked | 7.8% (As on 1-7-17) |
7.8 % (As on 1-7-17) |
8.65 % (As on 1-4-2017) |
# Return in market linked ELSS have been very good since inception. you are advice to check our ELSS return table before investing.