ELSS Mutual Funds – A Smart Way to Save Tax and Grow Wealth

1️⃣ What is ELSS?

ELSS (Equity Linked Savings Scheme) is a type of mutual fund that invests primarily in equities (company shares) and offers tax benefits under Section 80C of the Income Tax Act.
It is one of the most popular options for investors who want to grow their money while also saving tax.

2️⃣ Key Features of ELSS

💰 Tax Deduction: You can claim a deduction of up to ₹1.5 lakh under Section 80C.

🔒 Lock-in Period: The investment is locked for 3 years, which is the shortest among all 80C options.

📈 Market-Linked Returns: Since ELSS invests in equities, the returns depend on market performance and have higher growth potential than fixed deposits or PPF.

🧩 Flexible Investment Options: You can invest either lump sum or through a Systematic Investment Plan (SIP).

3️⃣ Benefits of Investing in ELSS

🌱 Wealth Creation: Ideal for long-term goals like children’s education, retirement, or home purchase.

💸 Tax Efficiency: Long-term capital gains over ₹1 lakh are taxed at just 10%, which is quite low compared to other investments.

🕒 Disciplined Investing: The 3-year lock-in encourages investors to stay invested and benefit from market growth.

⚖️ Diversification: ELSS funds invest in multiple sectors and companies, reducing overall risk.

4️⃣ Who Should Invest in ELSS?

Salaried individuals who want to save tax and build wealth.

Young professionals beginning their investment journey.

Investors with a moderate to high-risk appetite and a long-term horizon.

1. Tax Benefits of
Investing in ELSS
Mutual Funds

2. www.susampada.in An Equity Linked Savings Scheme (ELSS) is a type of mutual fund that
primarily invests in equity and equity-related instruments. It is designed to
help investors save tax while building long-term wealth. ELSS funds are
among the most popular tax-saving investment options under Section 80C
of the Income Tax Act, 1961. What is ELSS?
[phone]

3. www.susampada.in [phone]
Key Tax Benefits
Deduction up to ₹1.5 lakh per financial year under Section 80C.
Helps reduce your taxable income, lowering overall tax liability.
No tax on dividends (as they are reinvested).
Long-Term Capital Gains (LTCG) above ₹1 lakh are taxed at 10%, which is
lower compared to other income sources.

4. www.susampada.in [phone]
Shortest Lock-in PeriodELSS has a 3-year lock-in period, the shortest
among all Section 80C investments.
This encourages long-term investing while
ensuring tax savings.
After 3 years, you can redeem or continue the
investment for compounding growth.

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Lowest lock in period v/s other tax saving options

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Flexibility to participate in all three market caps

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FINAL VALUE

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