Equity-linked savings scheme

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Equity-linked savings scheme popularly known as ELSS are close-ended,lock-in period of 3 years diversified equity schemes offered by mutual funds in India.[1][2] They offer tax benefits under the new Section 80C of Income Tax Act 1961.[3] ELSS can be invested using both SIP(Systematic Investment Plan) and lump sums investment options.[4][5][6] There is a 3 years lock-in period, and thus has better Liquidity compared to other options like NSC and Public Provident Fund.[7] ELSS is considered one of the best tax saving instruments.[8][9]

The best ELSS funds of recent years are:

  • Franklin India Taxshield
  • Reliance Taxsaver
  • Axis Long term equity fund
  • DSP Blackrock tax saver fund
  • Birla Sun Life Tax Relief 96

See also[edit]

References[edit]

  1. ^ http://economictimes.indiatimes.com/mf/analysis/tax-saving-recycling-your-elss-investments-is-a-very-bad-idea/articleshow/56512440.cms
  2. ^ Five mistakes to avoid when investing in an ELSS fund
  3. ^ "Funds aimed at enabling investors to avail tax rebates under Section 80-C of the Income Tax Act".
  4. ^ "Investment in SIPs yields better returns than timing the market: Study".
  5. ^ "What's a mutual fund SIP?".
  6. ^ "Should you invest a lumpsum in ELSS?".
  7. ^ http://articles.economictimes.indiatimes.com/2013-02-18/news/37160319_1_equity-fund-lock-in-period-growth-option
  8. ^ "Choose the best tax saving instrument for you".
  9. ^ http://www.businesstoday.in/money/tax/elss-tax-savers-best-options-best-investment-proof-documents/story/244174.html