ELSS
Also known as: Tax Saving Mutual Funds, Equity Linked Savings Funds
Equity Linked Savings Scheme - Tax-saving mutual funds with 3-year lock-in period under Section 80C.
Detailed Explanation
ELSS (Equity Linked Savings Scheme) are equity mutual funds that qualify for tax deduction under Section 80C of the Income Tax Act. They have the shortest lock-in period of 3 years among all 80C instruments, making them attractive for tax planning while providing potential for wealth creation through equity exposure.
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Related Terms
Section 80C
Tax deduction provision allowing up to ₹1.5 lakh deduction for specified investments and expenses.
SIP
Systematic Investment Plan - Regular investment method in mutual funds for rupee cost averaging.
Mutual Fund
Investment vehicle pooling money from many investors to buy securities like stocks and bonds.