What is ELSS?<br /><br />ELSS (Equity Linked Savings Scheme) is a type of mutual fund that invests primarily in equities (company shares) and offers tax benefits under Section 80C of the Income Tax Act.<br />It is one of the most popular options for investors who want to grow their money while also saving tax.<br /><br />2️⃣ Key Features of ELSS<br /><br />💰 Tax Deduction: You can claim a deduction of up to ₹1.5 lakh under Section 80C.<br /><br />🔒 Lock-in Period: The investment is locked for 3 years, which is the shortest among all 80C options.<br /><br />📈 Market-Linked Returns: Since ELSS invests in equities, the returns depend on market performance and have higher growth potential than fixed deposits or PPF.<br /><br />🧩 Flexible Investment Options: You can invest either lump sum or through a Systematic Investment Plan (SIP).<br /><br />3️⃣ Benefits of Investing in ELSS<br /><br />🌱 Wealth Creation: Ideal for long-term goals like children’s education, retirement, or home purchase.<br /><br />💸 Tax Efficiency: Long-term capital gains over ₹1 lakh are taxed at just 10%, which is quite low compared to other investments.<br /><br />🕒 Disciplined Investing: The 3-year lock-in encourages investors to stay invested and benefit from market growth.<br /><br />⚖️ Diversification: ELSS funds invest in multiple sectors and companies, reducing overall risk.<br /><br />4️⃣ Who Should Invest in ELSS?<br /><br />Salaried individuals who want to save tax and build wealth.<br /><br />Young professionals beginning their investment journey.<br /><br />Investors with a moderate to high-risk appetite and a long-term horizon.
