1. What are ELSS funds?
ELSS (Equity Linked Savings Schemes) are tax-saving mutual funds that invest mainly in equities and qualify for deduction under Section 80C.
2. What is the lock-in period for ELSS?
ELSS funds have a mandatory lock-in period of 3 years from the date of investment.
3. How much tax benefit is available through ELSS?
Investments up to ₹1.5 lakh per financial year are eligible for deduction under Section 80C of the Income Tax Act.
4. Are ELSS funds risky?
Since ELSS funds invest in equities, they carry market risk but also offer higher long-term return potential.
5. Can ELSS be invested through SIP?
Yes, ELSS funds allow both lump sum and Systematic Investment Plan (SIP) modes of investment.