Drop Down MenusCSS Drop Down MenuPure CSS Dropdown Menu

Wednesday, 20 July 2016

Equity Linked Saving Scheme (ELSS)- Overview

The maximum Tax amount up to Rs. 1.5 Lakhs (for the current financial Year), is to be exempted by investing in ELSS scheme.

Investors who invest in ELSS funds are investing in a fund where minimum part of their investment means 80% of the invested amount can be in equities and equity-related securities. If we are comparing the return on investment(ROI), ELSS gives the higher performance than other tax saving instrument.
ELSS investments come with a locking period of three years, where the long-term capital gains and dividends are tax-free.

The lock-in period is only of three years making it the best option with the shortest lock-in period in tax saving options/scheme.

Benefits OF ELSS Investment

1. Tax exemption: Investor by investing Rs. 1.5 Lakhs (current financial Year) in ELSS mutual funds are eligible for tax exemption under SECTION 80C.

2. Minimum Lock-in period: ELSS mutual funds come with the lock-in period of three years. ELSS has the least lock-in period compared too other 80C options.

3. Tax-free Returns and dividends: It is the fact that there are the limited tax saving instruments like PPF, ELSS, ULIP and tax-free bonds. Each instrument has different benefits with some limitations.  Corporate Fixed Deposit, NSC, Bank FD, Post office scheme, etc. all these tax saving options’ returns are taxable based on individual tax slab that means whatever the interest you get in that year will be club in income slab. Let's have a look at the interest earned by Public Provident Fund(PPF); Returns are tax-free, but with a limitation that, there is 15-year lock-in period, means you cannot withdraw (apart from certain exemptions to withdraw in between). The best tax saving investment option that provides tax-free returns and high return on investment for a short period is ELSS Mutual funds.

4. Growth with Good Returns: Since an ELSS mutual fund invests in equity related instruments so these schemes would help you to grow your invested money with better returns when the stock market grows over a period.

Top ELSS Mutual Fund (As on 6th Oct 2017)

1. Axis Long Term Equity Fund (G): 

2. Kotak Tax Saver - Regular (G):

3. Reliance Tax Saver (ELSS) (G):
1 Year return- 18.8%, 3 Year return- 13.1%, 5 Year return- 20.8%.

1 Year return- 25.5%, 3 Year return- 16.5%, 5 Year return- 20.9%.

5. Franklin India tax Shield(G): 
1 Year return- 10.2% Year return- 13.1%, 5 Year return- 18.1%.

6. HDFC Tax Saver (G): 
1 Year return- 16.5%, 3 Year return- 10.4%, 5 Year return- 16.3%.

For any query, comment us below.

Click imagination hunt to read latest blogs.

Keep learning and sharing...


  1. Can the author get in touch with me? subha@fundexpert.in.
    You could write for us.

  2. This comment has been removed by a blog administrator.

  3. Its good if you update returns on daily basis... and I want to know about ULIP, whether its good investment or bad?

  4. You cannot compare ulip with other investments Ulip is for those who wants insurance plus investments for good return over the long duration.

  5. Can any one update the Upcoming NCD details

  6. useful for new users.

  7. Very Nice Artical Thanks for sharing information Get more information please click below cash is the process of give and take. cash HNI
    tips dept and created and exchange good.

  8. This comment has been removed by a blog administrator.

  9. This comment has been removed by a blog administrator.


Featured post

Think that makes you rich and richer

 Napolean said: “You can think and grow rich, but if you can be brought up like most people with work and you won't starve, this wil...