ELSS (Equity-Linked Savings Scheme)
A type of equity mutual fund eligible for a deduction under Section 80C, notable for having the shortest lock-in among 80C options.
ELSS funds invest mainly in shares and qualify for the Section 80C deduction under the old tax regime, up to the overall ₹1.5 lakh limit shared with other 80C instruments.
Their lock-in is typically three years — shorter than most other 80C options such as PPF or tax-saving fixed deposits. As equity funds, they carry market risk and suit a longer horizon.
Key points
- Equity fund eligible for Section 80C (old regime).
- Usually a three-year lock-in — the shortest among 80C options.
- Carries equity market risk.