What is ELSS?

• ELSS - Equity Linked Saving Scheme: Its a Tax saving tool.
• The only difference between an ELSS and a diversified Equity scheme is that ELSS have a mandatory lock in period of three years.
• ELSS enable tax benefits under section 80C upto Rs. 100000/-.
• Systematic Investment Plan(SIP) is an effective way of investing in ELSS.
• ELSS can be Growth or Dividend based in which Dividend is further divided into Dividend Re-investment and Dividend Redeemed.
• ELSS give higher returns compared to PPF or NSC.