Equity Linked Savings Scheme

{{Short description|Diversified equity scheme}}

{{Use dmy dates|date=July 2019}}

An Equity Linked Savings Scheme, popularly known as ELSS, is a type of diversified equity scheme which comes, with a lock-in period of three years, offered by mutual funds in India.{{cite news | url=http://economictimes.indiatimes.com/mf/analysis/tax-saving-recycling-your-elss-investments-is-a-very-bad-idea/articleshow/56512440.cms | title=Tax saving: Recycling your ELSS investments is a very bad idea | newspaper=The Economic Times | last1=T | first1=Madhu }}[http://www.business-standard.com/article/pf/five-mistakes-to-avoid-when-investing-in-an-elss-fund-117011600370_1.html Five mistakes to avoid when investing in an ELSS fund] They offer tax benefits under the Section 80C of Income Tax Act 1961.{{cite web|url=http://www.moneycontrol.com/mutual-funds/performance-tracker/returns/elss.html|title=Funds aimed at enabling investors to avail tax rebates under Section 80-C of the Income Tax Act.}} ELSSes can be invested using both SIP (Systematic Investment Plan) and lump sums investment options.{{cite news|url=http://economictimes.indiatimes.com/wealth/invest/investment-in-sips-yields-better-returns-than-timing-the-market-study/articleshow/53257429.cms|title=Investment in SIPs yields better returns than timing the market: Study|newspaper=The Economic Times |last1=Zaidi |first1=Babar }}{{cite web|url=http://www.rediff.com/getahead/2005/nov/09sip.htm|title=What's a mutual fund SIP?}}{{cite news|url=http://economictimes.indiatimes.com/mf/analysis/should-you-invest-a-lumpsum-in-elss/articleshow/56474362.cms|title=Should you invest a lumpsum in ELSS?|newspaper=The Economic Times }} There is a three years lock-in period, and thus has better liquidity compared to other options like NSC and Public Provident Fund.{{cite web | url=http://articles.economictimes.indiatimes.com/2013-02-18/news/37160319_1_equity-fund-lock-in-period-growth-option | archive-url=https://web.archive.org/web/20130221030551/http://articles.economictimes.indiatimes.com/2013-02-18/news/37160319_1_equity-fund-lock-in-period-growth-option | url-status=dead | archive-date=21 February 2013 | title=Business News Today: Read Latest Business news, India Business News Live, Share Market & Economy News }} Mutual funds are subjective to fluctuations in the market.