ELSS is short for Equity Linked Saving Scheme. These mutual funds invest up 80% of assets in equities, while the remaining funds may be invested in balanced or debt funds. ELSS are widely known as tax-saving mutual funds as they qualify for tax deductions of up to INR 150,000 under Section 80C of the Income Tax Act, 1961.
The process of how to invest in ELSS is simple. Simply log in to your Mirae Asset Trading Account and choose from a wide range of ELSS securities under the Mutual Funds section. Check the past performance of ELSS funds, choose your preferred investment method (lumpsum or SIP) and make your investment. Remember that ELSS comes with a 3-year lock-in period, so if you opt for SIP, each SIP instalment must be locked away for three years to avail of the tax benefit.