{"id":3193,"date":"2024-01-23T11:53:09","date_gmt":"2024-01-23T11:53:09","guid":{"rendered":"https:\/\/wp-api.pocketful.in\/blog\/?p=3193"},"modified":"2025-02-21T07:37:28","modified_gmt":"2025-02-21T07:37:28","slug":"elss-funds-3-years-lock-in-worth-it","status":"publish","type":"post","link":"https:\/\/wp-api.pocketful.in\/blog\/elss-funds-3-years-lock-in-worth-it\/","title":{"rendered":"ELSS Funds: 3 Years Lock-In Worth It?"},"content":{"rendered":"\n

Have you ever planted a seed and nurtured it for three years? ELSS funds are similar to those seeds. In today\u2019s blog, we will uncover how investing in ELSS funds can help you reap the seeds of tax-optimised returns.<\/p>\n\n\n\n

ELSS stands for Equity Linked Saving Scheme. ELSS is an equity mutual fund<\/a> investment that invests at least 80% of its assets in equity and equity-related instruments. Investors choosing ELSS funds as an investment option can claim deductions under Section 80C of the Income Tax Act of up to INR 1.5 lakh. The amount that you invest in ELSS is deducted from your taxable income and helps you pay a lesser amount of income tax. Investments in ELSS attract a 3-year lock-in period.<\/p>\n\n\n\n

\"ELSS\"<\/figure>\n\n\n\n

Some of the important features of ELSS funds are as follows.<\/strong><\/p>\n\n\n\n

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  1. ELSS funds primarily invest in equity-related instruments of companies with significant growth potential. This means they can generate higher returns as compared to other tax-saving options like the Public Provident Fund (PPF) or National Savings Certificate (NSC).<\/li>\n\n\n\n
  2. ELSS options can be a go-to option for investors who want to save tax and seek high returns.<\/li>\n\n\n\n
  3. Gains from ELSS investments after the lock-in period are taxed as long-term capital gains at a rate of 10%.<\/li>\n\n\n\n
  4. You cannot redeem your investment amount before three years from the date of investment. <\/li>\n\n\n\n
  5. Investments in ELSS funds can be done through both lump-sum and SIP.<\/li>\n<\/ol>\n\n\n\n

    Read Also: <\/strong>What is an Open-Ended Mutual Fund & How to Invest in it?<\/a><\/p>\n\n\n\n

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