What is ELSS?
ELSS (Equity Linked Savings Scheme) is a type of mutual fund that invests in stocks and equity-like instruments. It’s not just about growing your wealth but also about saving on taxes—making it a smart choice for long-term financial planning.
Tax Savings: With ELSS, you can enjoy tax deductions under Section 80C of the Income Tax Act, saving up to ₹1.5 lakh annually.
Wealth Growth: By diversifying your investment across stocks, ELSS aims to generate substantial returns over time.
Flexibility: ELSS funds have a short lock-in period for a short three year period, giving you more advantage and flexibility in comparison to other tax-saving options.
At Optifin Advisor, we’re here to simplify your investment journey with ELSS:
Under Section 80C of the Income Tax Act, ELSS (Equity Linked Savings Scheme) mutual funds provide tax advantages.It specifically invests in equity markets with a lock-in period of 3 years. ELSS aims to provide long-term capital appreciation while allowing investors to save taxes.
On the other hand, “mutual fund” is a broader category that encompasses various types of funds, including equity funds, debt funds, hybrid funds, and more. Mutual funds, in general, pool money from multiple investors to invest in diversified portfolios of stocks, bonds, or other securities based on the fund’s investment objective.
In summary, ELSS is a specific type of mutual fund focused on tax savings through equity investments with a shorter lock-in period, while mutual fund refers to the broader category of investment funds, comprising ELSS as well as other fund kinds.
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