Glossary term
ELSS
Equity tax-saver mutual fund — 80C deduction up to ₹1.5L (Old Regime) and a 3-year lock-in, the shortest among 80C options.
Equity-Linked Savings Schemes (ELSS) are diversified equity mutual funds that qualify for the Old Regime's Section 80C deduction up to ₹1.5 lakh per year. They have a mandatory 3-year lock-in — the shortest of any 80C instrument.
ELSS typically delivers 11–13% long-term return like other equity funds, with the bonus of a tax deduction on inflow. If you're 80C-eligible and have a 5+ year horizon, ELSS almost always beats PPF or NSC for the same ₹1.5 lakh.
See also