5 Replies to “what the diff. between ELSS and mutual fund?”

  1. Only ELSS (Equity Linked Saving Schemes) are tax saving MFs.

    MFs can be equity, debt or balanced. But ELSS are equity investments.

    MFs are usually open ended where as ELSS have 3 yr lock-in period.

    Both have no entry loads.


  2. ELSS is Equity Link Savings Schemes is an type of Mutual Fund ( MF)

    Both of them don’t have any kind of charges. Your whole amount is invested and nothing is deducted however in ELSS there is an lockin period of 3 years. You cannot withdraw the money before 3 yrs but you get the tax benefit for the financial year in which it was invested.

    Investment in MF other than ELSS will not give tax benefit.

    If you want you to make your portfolio or have any other questions then you can contact me at [email protected]

    Hardik Parekh

  3. ELSS is category of Mutual Funds for saving Income Tax. If you are a tax payer then you should opt for ELSS otherwise simple Mutual funds schemes are O.K.

  4. ELSS means Equity Linked Savings Scheme. ELSS Mutual Funds are also known as Tax Saving mutual funds means it comes under Section 80c. It means that Up to 1 Lakh invested in ELSS is totally Tax-free. In fact, up to 1 lakh invested in any financial product that comes under Section 80c is a tax free.

    The another difference is that, ELSS mutual funds have a lock-in period of 3 Years. While the regular Equity funds don’t have any lock-in period. Rather than going for PPF or 5 Year Recurring Deposits, if you go for ELSS Funds than the returns will be much more after 5 years than simply putting your money in PPF or RD.

    This is because ELSS is the Equity Product. These are the only 2 differences between ELSS & other mutual fund. Otherwise there is not a dime of difference between ELSS & other mutual funds. ELSS funds also have a fund manager whose job is to maintain the portfolio of stocks like other mutual funds.

    ELSS is the only tax saving product that is Equity Linked. And that’s why it offers much better returns than any other tax saving financial product in the long run. ELSS can be a good tax saving option for you.

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