What are Tax-Saving or ELSS funds?
ELSS or Equity Linked Saving Scheme is a type of open-ended equity mutual fund that has the dual benefit of growing your wealth and saving tax.
ELSS funds invest majorly in equity and equity related products and have a lock-in period of 3 years during which you are not allowed to withdraw the money.
Investments in ELSS funds qualify for tax exemption under section 80C of the Indian Income Tax Act up to a total of RS. 1.5 lakhs.