A Equity Linked Savings Scheme, popularly known as ELSS, is a type of diversified equity scheme which comes, with a lock-in period of three years, offered by mutual funds in India.[1][2] They offer tax benefits under the Section 80C of Income Tax Act 1961.[3] ELSSes can be invested using both SIP (Systematic Investment Plan) and lump sums investment options.[4][5][6] There is a three years lock-in period, and thus has better liquidity compared to other options like NSC and Public Provident Fund.[7] Mutual funds are subjective to fluctuations in the market. There were many instances where the money you invested is the same or even lesser after 3 years in a mutual fund.
See also
References
- ↑ http://economictimes.indiatimes.com/mf/analysis/tax-saving-recycling-your-elss-investments-is-a-very-bad-idea/articleshow/56512440.cms
- ↑ Five mistakes to avoid when investing in an ELSS fund
- ↑ Funds aimed at enabling investors to avail tax rebates under Section 80-C of the Income Tax Act..
- ↑ Investment in SIPs yields better returns than timing the market: Study.
- ↑ What's a mutual fund SIP?.
- ↑ Should you invest a lumpsum in ELSS?.
- ↑ http://articles.economictimes.indiatimes.com/2013-02-18/news/37160319_1_equity-fund-lock-in-period-growth-option