ELSS(Equity Linked Saving SCheme)

ELSS is a scheme to save tax by investing in Mutual Funds. Most of the money you invest in these funds will be kept in equity Market.

• Advantages
• Invested amount is exempted form Income Tax under Section 80C
• Less Lock-In period of 3 years compared to any other tax saving scheme like PPF, NSC, 5 years Fixed Deposit etc.
• Gives more returns in long term
• Dividend and Capital Gains you get are Tax Free
• There is no limit on the Investment but you can get upto 1.5L exemption under 80C
• Disadvantages
• Your Investment is at High risk
• There is no fixed interest you get from this scheme. Returns you get will depend on the Stock Market performance
• Notes
• All the mutual funds are not eligible for tax exemption
• To know the list of ELSS funds click HERE
• Instead of investing in Bulk, Prefer investing in SIP(Systematic Investment Plan) for Cost averaging
• Systematic Investment Plan means you have to invest periodically like Monthly or Quarterly
• Choose Direct option to avoid brokerage Charges
• Choose Growth option for compounding and wealth accumulation 
• Under 80C section you can show upto 1.5L per year