For Quick Alerts
For Daily Alerts

What Are The Advantages Of An ELSS Scheme?


Equity Linked Saving Schemes are a good bet for investors looking to make returns and save tax. It has several advantages of the more traditional tax saving instruments.

Here are a few advantages of investing in ELSS

1. A shorter lock-in period

ELSS has a very short lock-in period and the only instrument that offers tax saving and has a lock-in period of only 3-years. If you look at all the other tax saving instruments, they tend to have a lock-in period of 5 years, including the likes of ULIPs, PPF, bank tax saving instruments etc.


2. The returns can be superior

The returns in the case of an ELSS can be far superior than other instruments, given that theu tend to invest in equities. However, here we much emphasize that there is an element of risk as well that may exist, as is the case when investing in equities.

3. Tax benefit under SEC80C

Investors can even invest a large amount under this section, however, the tax break is available only up to an investment of Rs 1.5 lakhs.

What Are The Advantages Of An ELSS Scheme?


While the ELSS comes with some advantages as highlighted above, one needs to be cautious and select good ELSS schemes that have a great track record. So be selective before investing.

Read more about: elss saving investors
Company Search
Get Instant News Updates
Notification Settings X
Time Settings
Clear Notification X
Do you want to clear all the notifications from your inbox?
Settings X
We use cookies to ensure that we give you the best experience on our website. This includes cookies from third party social media websites and ad networks. Such third party cookies may track your use on Goodreturns sites for better rendering. Our partners use cookies to ensure we show you advertising that is relevant to you. If you continue without changing your settings, we'll assume that you are happy to receive all cookies on Goodreturns website. However, you can change your cookie settings at any time. Learn more