What is ELSS?
Equity Linked Savings Scheme
ELSS is a category of diversified equity mutual funds that qualifies for a tax deduction of up to ₹1.5 lakh under Section 80C of the old tax regime. It carries the shortest mandatory lock-in — just 3 years — among all Section 80C options.
Each SIP instalment into an ELSS fund has its own independent 3-year lock-in, so a SIP running for several years will have units unlocking on a rolling basis rather than all at once.
ELSS is only beneficial if you've opted for the old tax regime, since the new regime does not allow Section 80C deductions at all.
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