Investing Guide #97: What is an ELSS Mutual Fund? Save Tax & Grow Wealth Simultaneously

 

Want to Save Tax and Build Wealth? ELSS Might Be Your Best Bet

Equity Linked Savings Schemes (ELSS) are mutual funds that offer Section 80C tax benefits and solid long-term returns.

---

📘 How ELSS Works

• You invest in a mutual fund
• Get up to ₹1.5 lakh deduction under 80C
• Lock-in: Only 3 years (lowest among tax-saving options)
• Invest lump sum or via SIP

---

📈 ELSS vs Other 80C Options

Option	Returns	Lock-in	Risk
ELSS	10–15% avg	3 years	Moderate
PPF	7.1% (fixed)	15 years	Low
FD (Tax Sav)	5–6%	5 years	Low

---

🛡️ Best ELSS Funds (As of 2025)

• Axis Long Term Equity Fund
• Quant ELSS Tax Saver
• Mirae Asset Tax Saver Fund

---

✅ Conclusion

ELSS = tax saving + wealth building. Ideal for long-term investors looking for tax-efficient growth via mutual funds.

---