Equity Linked Saving Scheme (ELSS) are Mutual funds schemes that offers Tax Benefit u/s 80c, especially for Investor’s looking for an option of investing in Equity and to save Tax as well.
These funds come with a lock-in period of just three years, the shortest among all Section 80C investments.
65% of the scheme’s portfolio is allocated towards equity and equity-linked securities such as listed shares. It may have some exposure to fixed-income securities as well. Usually the portfolio consists of “Large Cap stocks” and often reflect stable consistent growth patterns
Another Advantage of Investing in ELSS is that you can invest through SIP on monthly basis, you can get Started with a Small Amount of Rs. 100/month. Comparatively this is quite facilitating for salaried class as they often struggle to accumulate lump sum amount to invest in Tax saving instrument at the time of Tax declarations.
ELSS are proving to be very lucrative investments in recent years, Most of the long term schemes have given an Average returns of more than 15% over a investment period of 10 years plus.
Well there are more than 20 popular ELSS schemes and choosing the best from these requires and expert advice.
We suggest you consult a qualified Financial Consultant before finalizing on a particular ELSS scheme.