3 Replies to “what are ELSS mutual funds?”

  1. ELSS Funds means Equity Linked Saving Schemes

    Equity Linked Saving Scheme is an open-ended equity growth scheme that is offered by mutual funds in line with existing ELSS guidelines. The investments under this type of scheme are subject to a lock-in period of 3 years and, as per the Finance Act 2005, are allowed the benefit of income deduction up to Rs. 1,00,000. ELSS offers the benefits of tax saving and capital gains. Instead of spreading your investments across different instruments such as PPF, ELSS, NSC and infrastructure bonds, you can now invest the entire limit of Rs. 100,000 available under Sec 80C in ELSS.

    But the sad thing ELSS funds will be removed from 80C from April 2012
    http://mutual-funds-personalfin.blogspot.com/2010/09/elss-funds-and-ulips-are-removed-from.html

    Check this also
    http://mutual-funds-personalfin.blogspot.com/2011/06/explain-lock-in-period-if-investment-is.html

    http://mutual-funds-personalfin.blogspot.com/2011/08/is-dividend-re-investment-in-tax-saver.html


  2. ELSS – Equity Linked Savings Scheme. This a mutual fund scheme which invests in a fixed portfolio over a period of 3 to 5 yrs. and investing for more than 5 to 10 yrs respectively. The ELSS schemes are unique in sense that the investor brings in small amounts ranging from rupees 500 to 1000 per month or quarterly based on his investment objectives. It also has tax incentives attached. refer to your investment adviser or banker on the schemes and their attached incentives, it varies from scheme to scheme. only in minute details, don’t fail to read them before investing. A lock-in period of 3 to 5yrs applies for many of these funds so be careful read and know before investing.


  3. ELSS refers to equity linked saving schemes which is one type of Mutual fund which provides us tax exemption under Section 80 C.

    Some of the important features of ELSS are as follows:

    – It has a lock in period of 3 years.
    – Tax exemption under Section 80 C upto Rs. 1,00,000.
    – Returns on ELSS are not fixed it is purely dependent on the market.
    – There are multiple options of investing. We can invest in it by paying one time or can opt for Systematic Investment Plan.
    – There are different types of funds under ELSS. Some of them are Birla Sun Life Tax Relief’96 – Growth Fund, Canara Robeco Equity Tax Saver Growth Fund, Fidelity Tax Advantage Fund – Growth, Taurus Mutual Fund – Growth, HDFC Tax Saver etc.





Leave a Reply

Your email address will not be published. Required fields are marked *