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Why ELSS
Why is ELSS the best tax‑saving investment for you?
Save tax
Lowest lock-in period
Returns are linked to stock market and are tax-free
Equity Linked Savings Schemes (ELSS) is a mutual fund investment that reduces your taxable income by `1,50,000. With a minimum lock-in period of just 3 years, ELSS has the potential to earn higher returns than most other tax-saving options as most of the portfolio is invested in the stock market.
See how ELSS compares with other tax-saving instruments:
ELSS | Tax‑saving FD | ULIP | NSC | PPF | EPF | |
Lock‑in period |
3 years | 5 years | 5 years | 5/10 years | 15* years | Till termination of employment |
Taxation aspect |
Dividend tax free in the hands of the investors and Capital Gains taxed at 10%# | Interest is taxable as per IT slab of individual | Maturity/claims proceed are tax free | Interest is taxable as per IT slab of individual | Interest is tax free | Interest is tax free |
Returns (p.a.) |
Market‑Linked | 6%^ | Market‑linked | **7.6% (for 5yrs deposit) |
7.6% | 8.4% |
Lock‑in period |
Taxation aspect |
Returns (p.a.) |
Mutual fund investments are subject to market risks, read all scheme related documents carefully. © 2019 IDFC Mutual Fund