Why invest in ELSS

One: You save taxes

Your investment in ELSS is eligible for tax exemption up to `150,000 under Section 80C of the Income Tax Act, 1961. Also, the returns on ELSS are tax-free.

Two: Your money grows

Since an ELSS is a mutual fund that invests in equity, the value of your investment grows as the stock market index rises.

Three: You invest long-term

An ELSS has a lock-in period of three years, improving the chances of your money growing in the long term.

Four: You receive dividends

You can opt to receive dividends on your ELSS investment, thus generating income even during the lock-in period.

Five: You get higher returns

In the long term, ELSS can outperform non-equity instruments like National Savings Certificate (NSC) and Public Provident Fund (PPF).

Six: You invest regularly

If you invest in ELSS through SIP (Systematic Investment Plan), you make monthly payments, hence enforcing the habit of investing regularly.

Seven: You enjoy optimal lock-in period

While PPF and NSC have lock-in periods of 15 years and six years respectively, ELSS has a lock-in period of only three years.