Securing Hannav Ledger...
Securing Hannav Ledger...
Glossary
Equity Linked Savings Scheme is a tax-saving mutual fund with minimum three-year lock-in, investing primarily in equity markets under Section 80C.
ELSS is the only mutual fund that saves tax under 80C — you lock money 3 years in equity for potential growth plus deduction up to ₹1.5 lakh.
Minimum 80% in equity per SEBI. Lock-in shortest among 80C options. Returns market-linked unlike PPF. LTCG tax applies on gains above exemption on redemption post lock-in. SIP into ELSS allowed with each instalment locked 3 years from its date.
Invest ₹1.2 lakh in ELSS before March — save up to ₹36,000 tax in 30% slab while building equity corpus. After 3 years, redeem or hold for further growth.
Yes, lock-in completes 3 years from each investment date. SIP ELSS unlocks tranches rolling after 3 years per instalment.
New regime generally disallows 80C deduction. ELSS suits old regime taxpayers seeking equity exposure with tax benefit.
One or two quality ELSS funds suffice. Over-diversifying across many ELSS increases overlap without extra benefit.