Your Tax Saver Mutual Fund- All That You Need to Know About ELSS

wealthfund elss elssELSS – What does it stand for?

ELSS or Equity Linked Savings Schemes are tax­-saving funds that fall under sector 80C and allow earning individuals to save tax of up to Rs 1.5 lakh. With lock-in period of 3 years, ELSS funds invest most of its funds in the stock market.

Are ELSS funds safe?

ELSS funds do not offer guaranteed or fixed returns because earnings are made from the equity market. There are dozens of best­ performing ELSS funds that have exhibited the capability of producing inflation­ beating returns. This is something traditional tax­ saving investments cannot offer.

What is the minimum and maximum ELSS investment limit?

There is no maximum limit on investment. Investor can start ELSS investment with as less as Rs 500. However, tax-saving can be received on maximum amount of Rs 1.5 lakh a year.

What the lock-in period in ELSS investment?

ELSS mutual funds come with lock­-in period of 3 years. Investor can continue investing even after completion of the tenure. Once the investment period is complete, he/she can stop an ELSS investment whenever desired.

What benefits of ELSS mutual funds?

Investor can earn tax rebate on investments up to Rs 1.5 lakh. Returns generated on ELSS funds are tax­-free, which can be withdrawn after 3­ year of lock­-in period.

How to invest?

Log in to your Wealthfund account.  Set desired parameters, such as age, return expectancy and risk appetite and click continue. User can chose to invest in lumpsum or in small amounts through SIP (Systematic Investment Plan) and avail benefit from changing market trends. With lock in period of 3 years, ELSS SIP is considered an ideal instrument for tax saving and building wealth at the same time.

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