Equity Linked Savings Scheme (ELSS) is diversified equity mutual fund schemes which enjoy tax benefits under Section 80C of The Income Tax Act 1961. ELSS Mutual Funds are also known as Tax Saver Funds as investors can claim deduction of up to Rs 150,000 in a financial year from their taxable income by investing in these schemes. Equity Linked Savings Schemes (ELSS) have lock-in period of 3 years, i.e. you cannot redeem your ELSS units before 3 years from the date of purchase. If you are investing in ELSS through Systematic Investment Plan (SIP), each instalment will be locked in for 3 years from their respective investment dates.