ELSS BENEFITS – The Finest Option for Tax-Saving

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ELSS funds are considered as one of the efficient ways to save taxes as compared to other investment options. Apart from building wealth, you get to enjoy the professional fund management and shorter lock-in-period.  

Are you thinking to consider parking your savings in ELSS? Not yet convinced? How about looking at some of the points mentioned below? Here: 

  • Tax Efficient: If taxsavings mutual funds are on your mind, then you should consider ELSS investments. Apart from serving as an efficient fund shield, it also brings in taxbenefits. Claiming taxbenefits in ELSS funds is not a tedious job. Under section 80C of the Income Tax Act, an individual can claim a taxdeduction of up-to 1,50,000 INR per year. NOTE: Make sure you hand over the copy of your ELSS statement as your investment proof. 
  • Wealth Creation for Long-Term: ELSS schemes come with a 3-year lock-in period wherein the investor cannot access the funds, thus securing their savings. To enjoy better returns, it is recommended to remain invested in ELSS tax saving funds for a period of 5 years or longer. Rest, the decision is yours!  
  • Early-Benefits: If you’ve just started enjoying a paycheck every month, it’s natural to feel that you can put off your long-term financial decisions such as investments for later part. Starting prompt means having enough time to gather wealth. For instance, if you start investing early, your funds will have a longerperiod to grow. 
  • Minimum Investment Requirement: The minimum required amount for the investment is low and starts with INR 500. This makes ELSS a sound investment option, especially for those who need to start with a low value and better returns.  


  • You can invest the amount in ELSS as per your requirement, but its only contribution is up to INR 1,50,000 that is exempted from tax under section 80C of the Income Tax Act. 
  • You can continue to stay invested in ELSS even after the completion of the lock-in-period of 3 years.  
  • If you are looking for the best investment options that offer tax-benefits with better returns and short lock-in-period, then ELSS it is.  
  • The returns as compared to a PPF or a Fixed Deposit is higher and better.  
  • Keep a strict note of the fund’s past performance; as well as their rating. 


It is important to take care of all the aspects of the fund you are looking for before parting your investment. Visit Gulaq to sample the top-rated funds. There is something for every investment profile you are looking for.  


*Mutual fund investments are subject to market risks. Please read the scheme information and other related documents carefully before investing.

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