ELSS Funds: Building Wealth while Saving on Taxes

 At some point in your employment,  you’ll notice the Tax-man gobbling up your income. At precisely this moment, all you could think of is saving your hard-earned money. What if we said it is possible to save tax in the process of building your wealth? This is exactly what ELSS does. ELSS or Equity Linked Saving Scheme is an investment option that allows you to make returns simultaneously by saving taxes. 



The investments in ELSS up to Rs. 1.5 lakhs are tax deductible under Section 80C of the Income Tax Act. ELSS investments have a short lock-in period of 3 years after which these funds can be redeemed. Considering other tax-saving investment options like PPF, NPS and FDs, the 3-year Lock-In period of ELSS fare well in comparison where the lock-in periods are 5 years and above. This makes ELSS a very suitable investment option for people looking to save tax.

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