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Equity Linked Savings Scheme (ELSS)

Best ELSS Funds Advisor in Mumbai, India.

Invest In ELSS and Save TAX!!

An Equity Linked Savings Scheme (ELSS) is an open-ended Equity Mutual Fund that doesn’t just help you in saving tax but also gives you an opportunity to grow your money. ELSS qualifies for tax exemptions under section (u/s) 80C of the Indian Income Tax Act.

There are the plethora of savings schemes to help you build your wealth, such as FD, PPF, and NSC. But returns from these schemes are taxed. This is where ELSS stands out with dual-benefit – its returns are generally higher & partially taxable (Returns are not taxable until 31 March 2018. After 31 March 2018, returns will be taxable at the concessional rate of 10% if gains are greater than Rs. 1 lakh. This coupled with a mere lock-in period of 3 years is all the reason for you to invest in ELSS now.

It has the shortest lock-in period, among investment options available under Section 80C. An ELSS has a lock-in period of three years, whereas the Public Provident Fund (PPF) account is essentially a long-term (15 years) product.

It is risky, but many new investors get scared when they learn that ELSS schemes invest mostly in stocks and carry a higher risk. However, you can overcome this if you are prepared to invest for a long period. Many studies prove that one can beat volatility and make superior returns from stocks by staying invested for a long period. We suggest that equity has the potential to offer superior returns than other asset classes over a long period.

Advantages of ELSS


Investments up to Rs. 1, 50, 000 per annum are exempted from tax. There are no capital gains tax, even dividends (if opted for) are tax-free.


You have the option to either make a lump sum payment for an ELSS or can opt for a SIP, thus it gives you the flexibility to plan your finances.


At maturity after three years, simply reinvest the capital to avail tax exemption and the capital gains tax without fresh fund inflows.


The funds invested are professionally managed by Fund Managers, experienced in this field.

There is no doubt that ELSS is good to reduce tax liability but at the same time, it may not give a best annual return as compared to other equity funds. Sometimes it’s wise to pay income tax and then invest that 1.5L (deduction under 80C) in better performing schemes that gives you best return.

If you want to redeem your entire units at one go, then for a yearly SIP your entire units will get free at the end of 4th year from the date you started SIP whereas in ELSS schemes, neither you can withdraw nor switch funds from ELSS schemes before completion of 3 years from the date of investment.

ELSS funds are good, a tax-saving choice for investors who want to earn higher returns through equity exposure. Though the returns are good, tax-saving benefits are limited only up to Rs1.5 lakh. Therefore, it doesn’t make sense to invest in ELSS funds if you’re already nearing the 80C limit. In other words, it doesn’t make sense to invest for the purpose of saving tax. However, ELSS funds do offer the decent return on investment, which many investors consider lucrative. We help you select the best ELSS funds.

Call Now on 977 391 0230 / 730 3333 758 for investing in ELSS Mutual Fund Schemes. Best Mutual Funds ELSS advisor in Mumbai, India.