EQUITY LINKED SAVINGS SCHEME

EQUITY-LINKED SAVINGS SCHEMES

Equity-linked savings schemes are also known as ELSS or tax savings schemes. These are like diversified equity schemes in terms of their portfolio composition but they give investors a tax benefit that other schemes do not. Investment up to Rs 1 lakh into these schemes qualify for a deduction under Section 80C of the Income Tax Act along with several other specified investment options.

Investors looking at earning a higher return on their investments and save on the tax at the same time opt for such schemes. Unlike normal equity schemes, ELSS carry a three year lock in.