NISM Exam Preparation

Master the concepts, ace the exam

Save Tax and Build Wealth with ELSS Mutual Funds

Looking for an investment that offers both tax benefits and the potential for high returns? Equity Linked Saving Schemes (ELSS) are a popular choice among investors in India for exactly these reasons. Let's dive into what makes ELSS a smart investment.

What is ELSS?

ELSS is a type of equity mutual fund that allows you to save up to ₹1,50,000 in taxes per financial year under Section 80C of the Income Tax Act. A significant portion of the fund's corpus is invested in equities, which provides the potential for long-term capital appreciation.

Key Features of ELSS

  • Tax Benefits: Deductions up to ₹1.5 lakh under Section 80C.
  • Lock-in Period: A statutory lock-in period of 3 years, which is one of the shortest among all tax-saving instruments.
  • Wealth Creation: Potential for high returns due to equity exposure.

Calculate Your Potential ELSS Returns

How much can you potentially earn and save with an ELSS investment? Use our ELSS Calculator to estimate your returns and see the power of compounding at work.

ELSS Calculator

Estimate your potential wealth gain and tax savings with an ELSS mutual fund.

ELSS Inputs

₹ 10,000
₹ 500₹ 12,500
12 %
1 %25 %
5 Years
3 Years30 Years

ELSS funds have a mandatory lock-in period of 3 years from the date of investment.

Investment Projection

Total Invested

₹6,00,000

Estimated Returns

₹2,24,864

Maturity Value

₹8,24,864

The 3-Year Lock-in

The mandatory 3-year lock-in period instills investment discipline and allows your money enough time to grow in the equity markets, shielding it from short-term volatility.

Ideal for Long-Term Goals

Due to their equity focus and lock-in period, ELSS funds are an excellent choice for long-term financial goals. Consider how they fit into your overall goal-based investment plan.

Invest Smarter, Not Harder

Understanding tax-saving instruments is a crucial part of financial planning. Our courses can help you navigate the complexities of the financial world.