Tax-Saving Funds (ELSS)
Equity-linked schemes that help you grow wealth while optimizing your tax liabilities.
How we help
Equity Linked Savings Schemes are equity funds that qualify for a deduction under Section 80C of the Income Tax Act, up to ₹1,50,000 a year, if you file under the old tax regime.
Each investment is locked in for three years from the date it is made, the shortest lock-in among the 80C options. With a SIP, every instalment has its own three-year lock-in.
The deduction does not apply under the new tax regime, and the fund carries full equity market risk. We check both before suggesting an ELSS.
What it covers
- Section 80C deduction under the old tax regime
- Three-year lock-in on each investment
- Investment by SIP or lump sum
Offered as an AMFI-registered mutual fund distributor, not a SEBI-registered investment adviser: no advisory fee is charged, trail commission is paid by the asset management company and disclosed, and no return is assured.
Before you decide
Points to check
- 01Which tax regime you file under
- 02What you already invest under Section 80C
- 03Your comfort with equity market risk
- 04The separate three-year lock-in on each SIP instalment
Common questions
What people ask us about Tax-Saving Funds (ELSS)
Can I withdraw before three years?
No. Each investment is locked in for three years from the date it was made. After that, it can be redeemed or left invested.
Do I get the 80C deduction under the new tax regime?
No. Section 80C deductions are available only under the old tax regime.
How are ELSS gains taxed?
Like other equity funds. Under current rules, gains on units held for more than 12 months are long-term and taxed at 12.5%, after an exemption of ₹1.25 lakh a year on total long-term equity gains. Gains on units held for 12 months or less are taxed at 20%.
More in Mutual Fund & Investment Options
- Equity FundsDesigned for long-term capital appreciation by investing in shares of high-growth companies.Learn more
- Debt FundsFocused on steady, regular income and capital preservation through fixed-income securities.Learn more
- Hybrid FundsBalanced portfolios combining equity and debt to optimize returns while managing risk.Learn more
Shree Sai Insurance is the practice of Amit Dhirajlal Waghela, an AMFI-registered mutual fund distributor (ARN-166386), not a SEBI-registered investment adviser. The firm earns commission from asset management companies on the schemes it distributes, does not charge a fee for distribution, and does not guarantee returns. Insurance is offered separately from the mutual fund distribution business. Mutual fund investments are subject to market risks. Read all scheme related documents carefully.