top of page

ELSS, a tax-saving mutual fund, receives positive reviews from experts for its potential returns.

ELSS, a mutual fund category, offers tax exemption of up to Rs 1.50 lakh under Section 80C of the Income Tax Act, coupled with a mandatory three-year lock-in period. Despite the tax advantages, several ELSS funds have demonstrated impressive returns over the past three years. Investors can opt for a lump sum investment or choose the systematic investment plan (SIP) route when investing in ELSS.

ELSS: You can start investing even with Rs 500

In an ELSS mutual fund, you get the option to choose the scheme according to your budget and convenience.

You can start investing in it with just Rs 500.

There is no limit on maximum investment.

According to experts, long-term investment in ELSS can give better returns.

In such a situation, it is capable of wealth creation.


ELSS: Income tax Saving 

There is tax saving on exiting ELSS schemes after 3 years. In this, income tax exemption is available up to a maximum limit of Rs 1.5 lakh under Section 80C of Income Tax.

However, you can get the benefit of this deduction only if you have opted the old tax regime.

Apart from this, you get other tax exemption on the returns you get on investment.

Long-term capital gains on ELSS are tax free up to Rs 1 lakh.

Long-term capital gains above this are taxed at the rate of 10 per cent.

Apart from this, cess and surcharge have to be paid.


Top-5 ELSS mutual funds in the 3 years with returns 

Quant ELSS Tax Saver Fund32.35% return

HDFC ELSS Tax Saver Fund25.02% return

Bandhan ELSS Tax Saver Fund24.94% return

SBI Long Term Equity Fund24.71%

Bank of India ELSS Tax Saver Fund23.88%

15 views0 comments


bottom of page