Equity Linked Savings Schemes are the most widely used market-linked route under Section 80C, and also the one most frequently misunderstood.
The lock-in applies to each instalment
An ELSS carries a statutory lock-in of three years, running separately for every purchase.
What you are actually buying
An ELSS is an equity mutual fund. The tax deduction changes nothing about the underlying risk.
The deduction, and its limits
Deductions under Chapter VI-A, including 80C, are generally not available if you have opted for the new tax regime.
Educational content only. This article explains how products and processes generally work. It does not take account of your personal circumstances and is not investment advice, a recommendation or an offer. RG Wealth Creation is an AMFI-registered Mutual Fund Distributor (ARN 308075) and is not registered with SEBI as an Investment Adviser or Research Analyst. Mutual fund investments are subject to market risks; read all scheme related documents carefully.
