Section 80C Tax Saving

ELSS Mutual Funds

Save taxes and grow wealth. Invest in Equity Linked Savings Schemes (ELSS) online to claim tax deductions up to ₹1.5 Lakhs under Section 80C rules.

Save Up to ₹46,800 Tax

Claim tax deductions up to ₹1.5 Lakhs under Section 80C, saving up to ₹46,800 annually for high taxpayers.

Shortest 3-Year Lock-In

Shortest lock-in among all 80C options (PPF is 15 years, Tax-Saving bank FDs are fixed at 5 years).

Inflation-Beating Growth

Portfolio is invested directly in stock markets, delivering superior compounding yields compared to debt tools.

3-Year Lock-In

Shortest 80C Lock-In

ELSS carries a mandatory lock-in period of 3 years from the deposit date. While you cannot withdraw capital, this lock-in allows fund managers to hold long-term stock allocations without short-term redemption pressures.

✔ 80C deduction limit: ₹1.5 Lakhs
✔ Historical returns average: 14-16% p.a.
✔ Automated monthly SIP options online

Comparison

ELSS vs PPF vs Tax-Saving FDs

Understand how ELSS schemes perform against traditional tax-saving instruments under Section 80C:

Equity Linked Savings Scheme (ELSS): 3-year lock-in period. High equity risk but yields inflation-beating historical average returns of 14-16%.
Public Provident Fund (PPF): 15-year lock-in period. Government-backed safe returns (currently 7.10% tax-free p.a.), carrying zero market volatility.
Tax-Saving Fixed Deposits: 5-year lock-in period. Guaranteed returns set by individual banks, with interest fully taxable under your slab.

FAQs

Frequently Asked Questions

Find immediate answers regarding ELSS tax saving mutual funds.

What are ELSS mutual funds?

ELSS (Equity Linked Savings Schemes) are diversified equity mutual funds that invest at least 80% of their total assets in equity and equity-related securities. They are the only mutual funds that qualify for tax deductions of up to ₹1.5 Lakhs under Section 80C.

How does the 3-year lock-in apply to monthly SIPs in ELSS?

The 3-year lock-in period applies to **each individual transaction/installment** separately. For example, a monthly SIP installment deposited on January 1st, 2026 will lock in and become eligible for withdrawal only after January 1st, 2029. Subsequent installments will unlock progressively month-by-month.

How is profit taxed on ELSS redemptions?

Since ELSS units can only be redeemed after a 3-year lock-in, all redemptions automatically trigger Long-Term Capital Gains (LTCG) tax. Under current rules, LTCG is taxed at 12.5% on net capital profits exceeding ₹1.25 Lakhs per financial year.