Equity Linked Savings Schemes (ELSS): A Comprehensive Guide to Tax-Saving Investments

Summary

The blog describes Equity Linked Savings Schemes (ELSS) and discusses their role in wealth creation with significant tax benefits. It covers features like a mandatory three-year lock-in, professional management, diversified equity exposure, and tax advantages under Section 80C. The post outlines investing methods and tax rules, making ELSS a solid option for long-term capital growth and effective tax planning.

Key Takeaways

ELSS funds offer dual benefits of tax savings and wealth creation.
They provide tax deductions under Section 80C with a Rs.150,000 limit.
A mandatory three-year lock-in period supports disciplined long-term growth.
Professional management ensures diversified equity exposure and risk management.
Tax exemptions on long-term capital gains make ELSS an attractive investment choice.